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March 15 is the deadline for the final advance tax installment for FY 2025–26. Salaried individuals with extra income may need to pay.
Advance Tax payment due today
March 15 is the last date for paying the final instalment of advance tax for the financial year 2025–26. Taxpayers who are liable to pay advance tax must clear most of their tax dues by today to avoid interest charges under the Income-tax Act.
Advance tax refers to paying income tax in instalments during the financial year instead of paying the entire amount at the time of filing the income tax return. It is applicable when the total tax liability for a financial year exceeds Rs 10,000 after considering tax deducted at source (TDS).
Who needs to pay advance tax
Advance tax is commonly associated with businesses and professionals, but it can also apply to salaried individuals in certain situations. If a taxpayer has additional sources of income such as capital gains, rental income, or significant interest income that is not fully covered by TDS, they may be required to pay advance tax.
Kinjal Bhuta, CA and Advocate and Treasurer at the Bombay Chartered Accountants’ Society (BCAS), says salaried taxpayers often overlook this requirement. “Advance tax is not restricted to businesses or professionals. Salaried individuals may also be liable if their total tax liability exceeds Rs 10,000 and the tax is not fully covered by TDS,” she explains.
In such cases, taxpayers are required to estimate the tax payable on these additional incomes and pay it through advance tax instalments during the financial year.
What freelancers and professionals should know
For freelancers and professionals, the March 15 instalment is particularly important as it typically covers almost the entire advance tax liability for the financial year.
Those opting for presumptive taxation schemes are allowed a simpler compliance process. Instead of paying multiple instalments during the year, they can pay their entire advance tax in a single instalment by March 15.
Bhuta notes that recent changes may also increase advance tax responsibility for some professionals. “The TDS threshold limit under Section 194J has been increased from Rs 30,000 to Rs 50,000 from April 1, 2025. This means several professionals may not have TDS deducted on smaller payments, increasing the need to compute and pay advance tax themselves,” she says.
Exemption for senior citizens
Senior citizens who do not earn income from business or profession are exempt from paying advance tax. Even if they earn income from bank interest, fixed deposits, or dividends, they are not required to pay advance tax during the year.
Instead, they can pay the tax due at the time of filing their income tax return.
What happens if the deadline is missed
If a taxpayer fails to pay the required advance tax by the prescribed instalment dates, there is no direct penalty. However, interest may be charged under Sections 234B and 234C of the Income-tax Act.
These interest provisions apply when advance tax payments are delayed or insufficient, increasing the overall tax liability.
Things to check before making the payment
Before paying the final instalment, taxpayers should review all possible sources of income that may not have TDS deducted. These may include capital gains, freelance income, interest income, or rental receipts.
It is also advisable to verify income details reflected in Form 26AS and the Annual Information Statement (AIS) to ensure accurate tax calculations. Taxpayers should also carefully select the correct assessment year and payment type while generating the challan on the income tax portal.
Can advance tax be paid on a Sunday?
Since March 15 falls on a Sunday this year, taxpayers may wonder whether payments can still be made.
Advance tax payments are made electronically through the income tax portal, which operates round the clock. This means taxpayers can complete the payment online even on Sundays or public holidays without any issue.
In cases where online payment is not possible, taxpayers may generate a challan and make the payment offline at a bank branch. The payment can then be completed within 15 days from challan generation or by March 31, whichever is earlier.
March 15, 2026, 12:29 IST
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