As the financial year 2025-26 comes to an end, taxpayers across India must meet an important tax deadline. March 15, 2026, is the last date to pay the fourth and final installment of advance tax.
Advance tax is part of India’s “pay-as-you-earn” tax system, where taxpayers pay their estimated tax liability in installments during the year instead of paying the full amount at once while filing the Income Tax Return (ITR).
If you miss this deadline, the Income Tax Department may charge interest penalties. Paying before March 15 ensures you stay compliant and avoid extra charges.
Who Must Pay Advance Tax by March 15?
Advance tax must be paid by individuals or businesses whose estimated tax liability exceeds ₹10,000 in a financial year after deducting TDS (Tax Deducted at Source).
The following taxpayers usually need to pay advance tax:
Freelancers and Professionals
Lawyers, doctors, consultants, digital creators, and other self-employed professionals often do not have TDS deducted on most income. Therefore, they must pay advance tax themselves.
Salaried Employees with Additional Income
Even salaried employees may need to pay advance tax if they have extra income such as:
- Rental income from property
- Capital gains from stocks or mutual funds
- Interest from fixed deposits or savings accounts
Business Owners
Both corporate and non-corporate businesses must estimate their annual profits and pay advance tax accordingly.
Presumptive Taxpayers (Section 44AD / 44ADA)
Taxpayers using the presumptive taxation scheme must pay 100% of their advance tax in a single installment by March 15.
Who Is Exempt?
Resident senior citizens aged 60 or above who do not have income from business or profession are not required to pay advance tax.
What Happens If You Miss the March 15 Deadline?
Missing the final advance tax installment can lead to interest penalties under the Income Tax Act.
Interest Under Section 234C
If the advance tax paid by March 15 is less than the required amount, the government charges 1% interest per month on the shortfall for one month.
Interest Under Section 234B
If you pay less than 90% of your total tax liability by March 31, another 1% monthly interest starts from April 1 until the tax is fully paid.
These interest charges can increase your final tax liability, so it is always better to pay advance tax on time.
How to Pay Advance Tax Online (Step-by-Step)
The Income Tax Department of India allows taxpayers to pay advance tax easily through the official e-Filing portal.
Follow these simple steps:
1. Visit the e-Filing Portal
Go to the official website: incometax.gov.in and click “e-Pay Tax” under Quick Links.
2. Verify Your Details
Enter your PAN number and mobile number, then verify using the OTP sent to your phone.
3. Select Tax Payment Type
Choose Income Tax and click Proceed.
4. Choose Assessment Year
Select Assessment Year 2026-27, which corresponds to Financial Year 2025-26.
5. Select Type of Payment
Choose Advance Tax (100) from the payment options.
6. Enter Tax Details
Fill in the tax breakup including:
- Basic income tax
- Surcharge (if applicable)
- Health and education cess
7. Make the Payment
You can pay using:
- Net banking
- Debit card
- UPI
- Other online payment methods
8. Save the Challan Receipt
After payment, download and save the challan receipt (CRN). This contains important details such as the BSR code and challan number, which you will need when filing your Income Tax Return (ITR).
Important Update: Changes Coming from April 1
Starting April 1, 2026, India is expected to move toward a new tax framework under the Income Tax Act, 2025. One of the key proposed changes is replacing the traditional terms “Previous Year” and “Assessment Year” with a simplified “Tax Year.”
Although the new framework aims to simplify compliance and potentially introduce clearer tax structures, taxpayers must still complete all FY 2025-26 obligations under the existing system.
Paying your advance tax before March 15 ensures a smooth transition into the next financial year without pending liabilities.
Final Tip for Taxpayers
The Income Tax portal usually experiences heavy traffic during the last two days before the deadline. To avoid delays:
- Try paying a few days before March 15
- Use a stable internet connection
- If the login portal is slow, use the pre-login e-Pay Tax option
Completing your payment early will help you avoid technical issues and unnecessary interest penalties.