Advance tax deadline is 15 June:From eligibility criteria calculation process to penalties – get all details here

Monday, 15 June, 2026 is the last day for payment of advance tax for the first quarter (Q1) of the Financial Year 2026-27 (FY27). What is advance tax? Paying taxes in advance during the same financial year you earn income is known as advance tax. This system also known as ‘pay as you earn’, requires both individuals and companies to pay taxes ahead of time if their yearly tax obligation exceeds ₹10,000. This requirement isn’t limited to just businesses and company owners – even salaried employees need to pay this tax. Pay penalty on missing deadline: It’s extremely important that taxpayers carefully track and pay their advance tax on time. Missing payments or failing to comply with these requirements can result in financial penalties and other complications with tax authorities. Being proactive about tax payments helps avoid unnecessary stress and additional charges while ensuring full compliance with tax regulations. If you fail to pay advance tax or pay less than the required amount by the deadline, you may be subject to payment of interest under Section 234C and Section 234B. Currently, 1% interest is charged on shortfall of advance tax. Even if the payment is missed by one day, the time duration taken for computation of penal interest will be the entire quarter ie three months. Advance tax payment schedule: The payment schedule is divided into four quarterly installments. For FY27, the first installment deadline falls on 15 June, 2026. What about Self-employed individuals? Self-employed individuals operating under the presumptive taxation scheme have different rules, allowing them to make a single payment by 15 June. How to calculate Advance Tax? 1. Estimate your income: Project your income for the entire financial year, including salary, business profits, capital gains, rental income, and any other sources. 2. Calculate your tax liability: Apply the applicable income tax rate to your estimated income to determine your total tax liability for the year. Calculate applicable deductions under different sections. 3. Deduct TDS: Subtract any Tax Deducted at Source (TDS) from your estimated tax liability. TDS is the tax already deducted from your income by the payer (eg, your employer, bank, etc.). 4. Advance Tax Payable: If the remaining amount (estimated tax liability minus TDS) is ₹10,000 or more, you are liable to pay advance tax.