Advance Tax Payment FY 2025-26 — Online Payment (Challan 280), Due Dates & CalculationJune 15 · Sept 15 · Dec 15 · March 15 · Who Must Pay · 234B/234C Interest · Payment Status

What is Advance Tax?

Advance tax is income tax paid in instalments during the financial year itself, rather than as a lump sum when filing ITR. It is governed by Section 208 of the Income Tax Act, 1961.

• Mandatory when estimated tax liability for the year exceeds ₹10,000 after subtracting TDS

• Paid in 4 instalments: June 15, September 15, December 15, and March 15

• Failure to pay triggers interest under Sections 234B (overall shortfall) and 234C (instalment shortfall)

• Senior citizens with no business income are exempt under Section 207

FY 2025-26 Advance Tax — At a Glance

Step-by-Step Online Payment via Income Tax Portal

• Step 1: Go to incometax.gov.in → Login with PAN and password

• Step 2: Click 'e-Pay Tax' in the left menu (or go to e-File → e-Pay Tax)

• Step 3: Click 'New Payment' → Select 'Income Tax' as the tax applicable

• Step 4: Under 'Type of Payment', select '(100) Advance Tax'

• Step 5: Enter Assessment Year: 2026-27 (for FY 2025-26 advance tax)

• Step 6: Enter the amounts — fill the appropriate head (e.g., 'Basic Tax' for income tax amount)

• Step 7: Select payment mode — net banking, debit card, NEFT/RTGS, or payment at bank branch

• Step 8: Review details and submit → the system generates a Challan Identification Number (CIN)

• Step 9: Save/print the challan — it reflects in Form 26AS within 3–5 working days

Alternative: Paying Through NSDL (TIN 2.0) Portal

You can also pay at the TIN 2.0 portal (tin.tin.nsdl.com). Select Challan 280, choose 'Advance Tax', fill details, and pay through your bank. The challan counterfoil is your proof of payment.

• Both income tax portal and NSDL/TIN 2.0 route use the same Challan 280

• Challan 280 is for individuals and non-corporate taxpayers; companies use Challan 281

• Minor head code 100 = Advance Tax (not 300 which is self-assessment tax)

• Always verify: AY 2026-27 for payments made in FY 2025-26

• Keep the BSR code + challan number from the counterfoil — needed when filing ITR in Schedule IT

Challan 280 — Key Fields at a Glance

Method 1 — Check via Form 26AS

Form 26AS is your consolidated tax credit statement. Every advance tax payment you make via Challan 280 is credited and reflected here within 3–7 working days.

• Step 1: Log in to incometax.gov.in with your PAN

• Step 2: Go to e-File → Income Tax Returns → View Form 26AS

• Step 3: Select the financial year (FY 2025-26) and format (HTML)

• Step 4: Scroll to Part C — 'Details of Tax Collected at Source' is Part A; advance tax is under Part C 'Details of Tax Paid (Other than TDS or TCS)'

• Step 5: Verify BSR code, challan date, and amount match your Challan 280 receipt

• If payment does not appear after 7 working days, use the challan correction option on the income tax portal

Method 2 — Check via Annual Information Statement (AIS)

AIS (available on the income tax portal under e-File → AIS) shows a more detailed view of all your tax transactions including advance tax payments.

• Navigate to incometax.gov.in → e-File → Annual Information Statement (AIS)

• Under 'Tax Information', look for 'Advance Tax / Self-Assessment Tax Payments'

• AIS reflects challan payments faster than Form 26AS in some cases

• If payment is visible in AIS but not 26AS, wait 2–3 more days — 26AS updates on a slightly different cycle

Method 3 — NSDL Challan Status Check

If you paid via the NSDL/TIN 2.0 portal, you can verify challan status directly using the BSR code and challan serial number.

• Go to tin.tin.nsdl.com → Services → Challan Status Enquiry

• Select 'CIN Based View' and enter BSR Code, Challan Tender Date, and Challan Serial Number

• Status shows whether the payment has been credited to the government account

• This check works even before the payment reflects in Form 26AS

What to Do if Advance Tax Payment Is Not Reflecting

• Wait at least 5–7 working days before escalating — processing takes time

• Verify: did you select the correct AY (2026-27)? Wrong AY means payment is credited to a different year

• Verify: did you use PAN (not Aadhaar) as the taxpayer identifier on the challan?

• Use 'Challan Correction' on the income tax portal (e-Pay Tax → Payment History) within the correction window

• If the challan was paid at a bank branch, submit a correction request at that branch with the counterfoil

Who Is Required vs Exempt

The ₹10,000 Threshold — How to Check

You are required to pay advance tax only when your net tax liability (total tax MINUS TDS already deducted) exceeds ₹10,000 for the financial year. Here's how to check:

• Step 1: Estimate total income from all sources (salary, business, rent, interest, capital gains)

• Step 2: Apply deductions under your chosen tax regime

• Step 3: Compute tax using applicable slab rates + surcharge + 4% cess

• Step 4: Subtract total TDS already or expected to be deducted (check Form 26AS or salary slip)

• Step 5: If the remaining amount > ₹10,000 → advance tax is mandatory

• If TDS fully covers your tax (common for salaried employees with stable income and no other sources) → no advance tax needed

Calculation Steps

• Step 1: Estimate gross income from all sources — salary, business profit, freelance fees, rent, FD interest, dividends, capital gains

• Step 2: Deduct eligible deductions — standard deduction (₹75,000 if salaried under new regime), 80C, 80D, HRA, etc.

• Step 3: Compute tax on net taxable income using FY 2025-26 slab rates (add surcharge if income > ₹50L)

• Step 4: Add 4% health & education cess on the computed tax

• Step 5: Subtract TDS already deducted or expected to be deducted during the year

• Step 6: The remaining tax is your advance tax liability — if > ₹10,000, pay in instalments

Worked Example — Freelance Consultant

Priya is a freelance management consultant earning ₹20 lakh in FY 2025-26. No employer deducts TDS on her fees. She opts for the new tax regime.

Instalment Breakup for the Example

Total advance tax liability: ₹2,08,000. Instalment-wise payment schedule:

Salaried Employee with Additional Income

Ravi earns ₹14L salary (employer deducts ₹1,40,000 TDS). In August 2025 he sells shares realizing ₹3L STCG (Section 111A, 20% rate).

• Tax on ₹3L STCG @ 20% = ₹60,000 + 4% cess = ₹62,400

• This STCG was not estimable in June (sale happened in August) → no 234C interest on June shortfall for this amount

• By September 15, 2025: Ravi must pay 45% of ₹62,400 = ₹28,080 (cumulative)

• By December 15, 2025: 75% of ₹62,400 = ₹46,800 (pay ₹18,720 more)

• By March 15, 2026: 100% = ₹62,400 (pay ₹15,600 more)

• Special rule: capital gains arising after any instalment due date are exempt from 234C interest for missed earlier instalments

Exact Due Dates and Cumulative Percentages

What Counts as 'Paid by the Due Date'?

• Payment credited to government account by the due date — bank processing time matters

• Online payments via NSDL/TIN 2.0 portal: credited same day if paid by bank cut-off time (usually 8 PM for net banking)

• Challan 280 at bank branch: credited on the same day if submitted before banking hours end

• If March 15 falls on a holiday: payment on the next working day is acceptable

• Advance tax paid after March 15 but before March 31 is still counted as advance tax — not self-assessment tax

Single Instalment Rule for Presumptive Taxpayers

Taxpayers who opt for the presumptive taxation scheme (Sections 44AD, 44ADA, 44AE) are NOT required to pay advance tax in the June/September/December instalments. They must pay 100% of their advance tax by March 15 in one single payment.

Example — Doctor Under Section 44ADA

Dr. Kumar, a physician, has gross professional receipts of ₹60L in FY 2025-26. He opts for Section 44ADA.

• Presumptive income = 50% of ₹60L = ₹30L (deemed income; actual expenses not deductible)

• Tax under new regime on ₹30L: 0–4L @ nil = ₹0; 4–8L @ 5% = ₹20,000; 8–12L @ 10% = ₹40,000; 12–16L @ 15% = ₹60,000; 16–20L @ 20% = ₹80,000; 20–24L @ 25% = ₹1,00,000; 24–30L @ 30% = ₹1,80,000

• Total income tax = ₹4,80,000

• 4% health & education cess = ₹19,200 → Total tax liability = ₹4,99,200

• No TDS expected on professional fees (some clients may still deduct TDS @ 10% u/s 194J — subtract that from ₹4,99,200)

• Advance tax payment due: 100% by March 15, 2026 = ₹4,99,200 (minus any TDS received)

Section 234B vs Section 234C — Key Differences

Section 234C — Instalment Shortfall Interest Calculation

Example: Priya (from earlier example) misses the June 15 instalment entirely and pays nothing until September.

Section 234B — Overall Shortfall Interest

Section 234B applies if total advance tax paid by March 31 is less than 90% of final assessed tax.

• Assessed tax = tax as determined in the final ITR assessment (or self-assessment)

• Threshold: if advance tax paid < 90% of assessed tax → 234B applies

• Interest rate: 1% per month from April 1 of the following year until payment date

• Example: If Priya's assessed tax is ₹2,08,000 and she paid only ₹1,60,000 by March 31:

• 90% threshold = ₹1,87,200; paid ₹1,60,000 < ₹1,87,200 → 234B applies

• Shortfall = ₹2,08,000 − ₹1,60,000 = ₹48,000

• If she pays the balance on July 31, 2026: 4 months (April–July)

• 234B interest = ₹48,000 × 1% × 4 = ₹1,920

• This interest is paid as self-assessment tax when filing ITR

Exceptions — When 234C Does NOT Apply

• Capital gains (STCG/LTCG) arising AFTER the instalment due date — no 234C for those missed instalments

• Dividend income received after the instalment date — pay in subsequent instalments without penalty for prior shortfall

• Casual income (lottery, game shows) arising after the instalment date

• Windfall income not reasonably estimable in advance — first payment can be in the next installment

• Senior citizens with no business income — entirely exempt from advance tax (Section 207)

Capital Gains — Pay in the Quarter They Arise

Capital gains are often not predictable in advance. The Income Tax Act provides relief:

• If STCG/LTCG arises after March 15 (i.e., March 16–31): pay entire capital gains tax by March 31 — no 234C interest

• If STCG/LTCG arises after December 15 but before March 15: include in March 15 instalment — no 234C for Dec/Sept/Jun shortfalls on this amount

• If STCG/LTCG arises after September 15 but before December 15: include in Dec 15 and Mar 15 instalments proportionately

• Key principle: you pay for capital gains tax in the instalment AFTER the gain is realized — no retroactive penalty

• However, Section 234B still applies at year-end if total advance tax < 90% of final assessed tax

Dividend Income — When to Pay

Post-2020, dividends from shares and mutual funds are taxable at slab rate in the hands of investors. The same capital gains timing rule applies:

• Dividend declared after an instalment date → include it in the next instalment

• Mutual fund dividend/IDCW: include in the quarter it's received

• Section 194 TDS on dividends: if company deducts 10% TDS and your dividend income is large, check if net tax after TDS exceeds ₹10,000

NRI Advance Tax

• NRIs with Indian income (rental, interest, capital gains) are subject to advance tax if net liability > ₹10,000

• Same 4-instalment schedule applies — June 15, September 15, December 15, March 15

• Most NRI income has TDS deducted at higher rates (property rent: 31.2%, interest: 30.9%, STCG: 15%+cess, LTCG: 12.5%+cess) — often TDS covers full liability

• If TDS covers all liability, no advance tax needed — verify by checking Form 26AS online