Advance tax installments under Section 211: 15-Jun, 15-Sep, 15-Dec, 15-Mar
Section 211 fixes four advance tax dates for FY 2026-27, opening with the 15% instalment on 15 June 2026. Here is the schedule, the 234B/234C interest maths and what else to watch.
For most salaried households, 31 May 2026 reads like a quiet Sunday. For anyone with interest income, capital gains, rent or freelance receipts, it is the start of a fortnight that ends with the first hard tax deadline of the new financial year. Section 211 of the Income Tax Act, 1961 fixes four advance tax instalment dates for FY 2026-27 (assessment year 2027-28), and the opening slice — 15% of your estimated liability — falls due on 15 June 2026. Miss it and Section 234C runs interest at 1% per month on the shortfall.
The same fortnight carries a second event for the watchlist: the Reserve Bank of India's next Monetary Policy Committee (MPC) review is scheduled for 3-5 June 2026, with the repo rate currently held at 5.25%. The two are connected. The rate you earn on deposits feeds the interest income on which advance tax is computed, so a June rate signal shapes the estimate you make for the 15 June instalment. Before you pay, size the number with our advance tax calculator.
Statutory Deadlines
The headline deadline is the first advance tax instalment for FY 2026-27, due 15 June 2026. Section 211(1) sets a cumulative schedule rather than four equal payments: 15% by the June date, 45% by 15 September 2026, 75% by 15 December 2026 and the full 100% by 15 March 2027. The percentages are of your total estimated advance tax for the year, computed as estimated total income less eligible TDS and TCS under Section 209. The bare provisions are published on incometax.gov.in and on the consolidated Income-tax Act, 1961 hosted at indiacode.nic.in.
| Instalment due date | Cumulative advance tax payable | This instalment (illustrative, Rs 1,00,000 liability) |
|---|---|---|
| 15 June 2026 | 15% | Rs 15,000 |
| 15 September 2026 | 45% | Rs 30,000 |
| 15 December 2026 | 75% | Rs 30,000 |
| 15 March 2027 | 100% | Rs 25,000 |
Not everyone is in scope. Section 208 makes advance tax payable only where the estimated tax liability for the year, net of TDS and TCS, is Rs 10,000 or more. Below that, you settle the balance as self-assessment tax at filing. Section 207(2) carves out resident senior citizens aged 60 or above who have no income chargeable under "Profits and gains of business or profession" — they pay nothing in advance, regardless of how large their pension or interest income is.
Presumptive taxpayers get a compressed timetable. The proviso to Section 211(1) lets anyone declaring income under the presumptive schemes — Section 44AD for small businesses and Section 44ADA for professionals — pay 100% of advance tax in a single instalment by 15 March 2027, skipping the June, September and December dates entirely. The trade-off is that the whole liability lands at once; our presumptive tax calculator shows how the 8%, 6% or 50% deemed-income rates translate into that single payment.
Two interest sections enforce the calendar, and they are distinct. Section 234C is the deferment charge: 1% per month on the shortfall in any individual instalment, counted for three months for the first three dates and one month for the last. Section 234B is the default charge: 1% per month from 1 April 2027 if, by 31 March 2027, you have paid less than 90% of the assessed tax. The two can stack in the same year.
| Provision | Trigger | Rate | Period |
|---|---|---|---|
| Section 234C | Shortfall in any instalment | 1% per month (simple) | 3 months per instalment (1 month for the 15-Mar instalment) |
| Section 234B | Less than 90% of assessed tax paid by 31 March | 1% per month (simple) | From 1 April of the assessment year to date of payment |
There is relief built into Section 234C. The proviso waives interest on the first instalment if at least 12% of the tax due is paid by 15 June, and on the second if at least 36% is paid by 15 September — a cushion for taxpayers who under-estimate early in the year. Section 234C also does not apply to a shortfall caused by income that could not reasonably be estimated in advance, such as a capital gain or a one-off dividend, provided the tax on it is paid in the remaining instalments.
Tomorrow itself carries a separate compliance date. Under Rule 31A of the Income Tax Rules, the quarterly TDS statement for the January-March 2026 quarter (Forms 24Q and 26Q) is due 31 May 2026; the same return drives the Form 16 that employers must issue to staff by 15 June 2026 under Rule 31. If you are a salaried taxpayer cross-checking deductions, that Form 16 is what reconciles against the TDS already credited before you size any advance tax top-up.
Market Events
The standout market event in the run-up to the first instalment is the RBI MPC review on 3-5 June 2026. The committee held the repo rate at 5.25% on 8 April 2026 — its second consecutive pause — with a neutral stance, after a cumulative 125 basis points of cuts through 2025 took the rate down from 6.50%. The standing deposit facility (SDF) sits at 5.00% and the marginal standing facility (MSF) at 5.50%, per the April statement on rbi.org.in.
Why this matters for an advance tax estimator: the April policy projected CPI inflation of 4.6% for FY27 and GDP growth of 6.9%, and any change in the repo rate flows into deposit and bond yields within a quarter. If you are estimating interest income for the 15 June 2026 instalment, the June MPC signal is the most current read on where fixed-deposit and small-savings returns are heading. A taxpayer with a large fixed-deposit book should pencil the rate decision into the income estimate before locking the first 15% payment.
For market-linked income, the same estimate has to capture realised capital gains. Long-term capital gains on listed equity are taxed at 12.5% beyond the Rs 1.25 lakh annual exemption, and short-term gains at 20%, following the 23 July 2024 Budget changes. Because Section 234C exempts shortfalls from gains that could not be foreseen, the practical rule is to fold any realised gain into the next instalment after the sale rather than the one before it. If you run a systematic equity plan, our SIP calculator helps project the corpus, though redemptions — not contributions — are what create the taxable event.
Earnings
No company results are confirmed in our verified calendar for 31 May 2026 or the immediate run-up to the 15 June 2026 advance tax date, and we do not publish unverified earnings dates. Quarter-four FY 2025-26 results for most large listed companies were declared through April and May 2026; the next dense earnings window — first-quarter FY 2026-27 numbers — typically opens in the second half of July, after the 15 June and well before the 15 September 2026 instalment.
The earnings link to advance tax is indirect but real for two groups. Shareholders who received dividends during FY 2026-27 must add that income to their advance tax estimate, since dividends are taxable at slab rates with 10% TDS under Section 194 above Rs 10,000 from a single company. Traders and active investors who booked profits in the April-June quarter should slot the resulting tax into the 15 September 2026 instalment, using the Section 234C carve-out for unforeseeable gains rather than back-dating it to 15 June. For a clean view of how that income stacks on salary, run the figures through our new regime income tax calculator.
FAQ
What are the advance tax due dates for FY 2026-27?
Section 211 sets four dates: at least 15% of the estimated liability by 15 June 2026, 45% cumulative by 15 September 2026, 75% by 15 December 2026 and 100% by 15 March 2027. The percentages apply to total advance tax, which is estimated income tax less eligible TDS and TCS under Section 209.
Who has to pay advance tax?
Under Section 208, advance tax is payable by anyone whose estimated liability after TDS and TCS is Rs 10,000 or more in the year. Resident senior citizens aged 60 or above with no business or professional income are exempt under Section 207(2), even on large pension or interest income.
How is Section 234C interest calculated?
Section 234C charges simple interest at 1% per month on the shortfall in any instalment. The proviso waives it on the first instalment if at least 12% of the tax due is paid by 15 June, and on the second if at least 36% is paid by 15 September 2026.
How is Section 234B different from Section 234C?
Section 234C penalises deferment of individual instalments during the year. Section 234B is a separate 1% per month charge that starts on 1 April 2027 if less than 90% of assessed tax has been paid by 31 March 2027. Both can apply in the same assessment.
How do presumptive taxpayers pay advance tax?
Under the proviso to Section 211(1), taxpayers opting for Section 44AD or 44ADA pay the entire advance tax in one instalment by 15 March 2027. Paying after that date attracts Section 234B interest from 1 April 2027.
Can advance tax be paid after a due date?
Yes. Any payment up to 31 March 2027 still counts as advance tax, though a late or short instalment attracts Section 234C interest at 1% per month. Tax paid on or after 1 April 2027 is treated as self-assessment tax under Section 140A.
Does the June 2026 RBI policy affect my advance tax?
Indirectly. The RBI MPC reviews policy on 3-5 June 2026 with the repo rate at 5.25%. Rate moves change deposit and bond yields within a quarter, which alters the interest income you must estimate for the 15 June 2026 instalment.
Sources & Citations
- Income Tax Act, 1961 — Sections 207, 208, 211, 234B, 234C — Income Tax Department
- The Income-tax Act, 1961 (full bare act) — India Code, Government of India
- RBI Monetary Policy Statements and press releases — Reserve Bank of India
Frequently Asked Questions
What are the advance tax due dates for FY 2026-27?
Under Section 211 of the Income Tax Act, 1961, advance tax for FY 2026-27 (assessment year 2027-28) is payable in four instalments: at least 15% of the estimated liability by 15 June 2026, 45% (cumulative) by 15 September 2026, 75% by 15 December 2026 and 100% by 15 March 2027.
Who has to pay advance tax?
Section 208 makes advance tax payable by any taxpayer whose estimated tax liability for the year, after deducting TDS and TCS, is Rs 10,000 or more. Resident senior citizens aged 60 or above with no income from business or profession are exempt under Section 207(2).
How is interest under Section 234C calculated?
Section 234C charges simple interest at 1% per month on the shortfall in any individual instalment. No interest applies on the first instalment if at least 12% of the tax due is paid by 15 June, or on the second if at least 36% is paid by 15 September, under the proviso to Section 234C.
What is the difference between Section 234B and Section 234C interest?
Section 234C penalises deferment of individual instalments during the year, while Section 234B charges 1% per month from 1 April of the assessment year if less than 90% of the total assessed tax has been paid by 31 March. Both can apply together in the same year.
How do presumptive taxpayers under 44AD and 44ADA pay advance tax?
Taxpayers opting for presumptive taxation under Section 44AD or 44ADA pay the entire advance tax in a single instalment by 15 March 2027, as provided in the proviso to Section 211(1). Paying after 15 March attracts Section 234B interest.
Can advance tax be paid after the due date?
Yes. Any advance tax paid up to 31 March 2027 still counts as advance tax, but a delayed or short instalment attracts Section 234C interest at 1% per month. Tax paid on or after 1 April 2027 is treated as self-assessment tax under Section 140A and may carry Section 234B interest.
Is salary income subject to advance tax?
Salary is largely covered by TDS under Section 192, so salaried taxpayers with no other income usually have no advance tax liability. Advance tax becomes relevant when there is additional income — interest, capital gains, rent or freelance receipts — on which tax of Rs 10,000 or more remains after TDS.