Written by Harwansh Tiwari — Bengaluru-based personal finance builder and founder of NiyamFin. Educational only; not financial advice.
Published · Last reviewed: · Data checked: · Reviewed event-driven or after major regulatory changes · Updated after Budget 2025-26 / FY 2026-27
Sources: Income Tax Department, RBI, SEBI, PFRDA, IRDAI, AMFI · See methodology
Advance Tax in India: Tax Year 2026-27 Rules and Instalments
Understand current advance-tax thresholds, instalments and interest under the Income Tax Act, 2025.
Quick answer
EstimateFor tax year 2026-27, section 404 of the Income Tax Act, 2025 sets the ₹10,000 advance-tax threshold; sections 424 and 425 govern relevant interest mechanics.
This article covers tax year 2026-27, for which the Income Tax Act, 2025 applies. Earlier periods remain governed by the law applicable to those periods; do not relabel a pre-2026 default with new-Act section numbers.
Who may need to pay
Under section 404 of the Income Tax Act, 2025, advance tax is payable when the computed tax payable during the year is ₹10,000 or more, subject to the Act's conditions and exceptions. Calculate total estimated income, applicable tax, credits and tax already deducted or collected.
The standard cumulative instalment pattern for applicable taxpayers is 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March. Presumptive-tax cases can have a different schedule under section 408(2).
Shortfall interest
For tax year 2026-27, section 424 addresses failure to pay sufficient advance tax and section 425 addresses deferment of instalments. The official transition FAQ states that the interest framework remains aligned with the corresponding old-Act rules, but the applicable section numbers depend on the period.
Avoiding statutory interest is not an investment return and should not be described as a guaranteed return. Re-estimate when material income or gains arise and verify the current tax-portal instructions before payment.
Sources
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Data sources checked
Source-dependentData last checked: 2026-10-08
Rules, rates, and regulatory details can change. Use the source links below to verify current facts before acting.
Disclaimer
This article is for general education only. It does not provide financial, investment, tax, insurance, lending, or legal advice and should not be used as the basis for financial decisions.