Next advance tax deadline for FY 2025-26 on September 15: What should taxpayers do?

September 15 tax deadline is significant for taxpayers in two ways: first it is the due date of income tax return filing, and the other one is second installment of advance tax for Financial Year (FY) 2025‑26.

For the second installment of advance tax for Assessment Year (AY) 2026‑27, the due date is on or before September 15, 2025 ( Monday). By then, you must pay 45% of your total estimated tax liability, minus any advance tax already paid.

Interest and penalties will apply for any missed or short payments towards second instalment of advance tax.

⦁ Estimate your total tax liability for FY 2025‑26, considering all income sources, deductions.

⦁ Calculate how much advance tax you have already paid.

⦁ Ensure you have paid at least 45% of the total estimated liability.

"If you delay or fall short in paying advance tax, you will incur interest at a rate of 1% per month (12% annually). Any delay, even one day beyond the due date, incurs interest for three months," said Mumbai-based tax and investment expert Balwant Jain.

September 15: Deduct any already paid taxes and pay 45% ( cumulative) of the advance tax.

December 15: After deducting any taxes that have already been paid, pay 75% (cumulative) of the advance tax.

March 15: Deduct any already paid taxes and pay the remaining advance tax balance.