Last Updated:
The fourth advance tax tranche is due March 15, 2026. Taxpayers owing over Rs 10,000 must pay 100% by then. Senior citizens without business income are exempt.
Advance Tax Deadline on for fourth installment
Advance Tax Deadline: The deadline for the fourth tranche of advance tax is on March 15, 2026. Those who are eligible have to pay 100 per cent advance tax by the due date, as failing to comply will attract fines and other penalties.
Even if a taxpayer files tax returns every year, he/she still need to pay advance tax on a quarterly basis if their total tax liability in a financial year is more than Rs 10,000 after adjusting TDS (tax deducted by employer, bank), TCS and tax credits.
Taxpayers opting for presumptive taxation have to pay 100% advance tax in single installment before 15th March, according to CA Chandni Anandan, Tax Expert at ClearTax.
To understand if advance tax is applicable to you, calculate your total income for the year, compute the tax liability on it, and deduct any TDS/TCS from the tax liability. If the remaining tax liability exceeds Rs. 10,000 then you have to pay advance tax.
However, senior citizens without business or professional income are exempt from advance tax.
Advance Tax Installment Schedule (FY 2025-26)
- June 15, 2025: 15% of the total tax liability.
- September 15, 2025: 45% of the total tax liability.
- December 15, 2025: 75% of the total tax liability.
- March 15, 2026: 100% of the total tax liability.
Who usually needs to pay advance tax
- Freelancers or consultants
- People with capital gains from stocks or mutual funds
- Rental income
- Interest income (FDs etc.)
- Business income
- If your employer already deducts TDS covering almost all your tax, then you normally don’t need advance tax.
- Important for salaried people
If you suddenly earn extra income like:
- stock market profits
- crypto gains
- side income
What Are Penalties?
Failing to pay advance tax on time will attract interest under Section 234B and 234C.
Anandan said that tax on any unexpected income such as bonus, capital gains, dividends, or gifts have to be included and paid in the next installment. “You should calculate the tax on that new income and pay it in the remaining installments that are still due,” Anandan added.
For example, if you book a capital gain of Rs. 3 lakh on 1st September, then the tax on this gain should be computed and paid with the remaining advance tax installments.
Any income arising after 15th March, the 100% tax on it should be paid within 31st March.
March 11, 2026, 12:27 IST
Read More
Source link
[ad_3]
