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  5. June 15 advance tax deadline: Who must pay, who is exempt, and what senior citizens should check

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June 15 advance tax deadline: Who must pay, who is exempt, and what senior citizens should check

sangeeta-ojha.webp
By Sangeeta Ojha

3 min read | Updated on June 12, 2026, 15:59 IST

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SUMMARY

The first advance tax instalment for FY 2026-27 is due on June 15. Check who must pay advance tax, who is exempt, rules for senior citizens, and how to avoid interest charges.

advance tax deadline june 15

Advance tax is mandatory if the estimated tax liability for the financial year is ₹10,000 or more. | Image: Shutterstock.

Advance tax is the payment of tax during the financial year in 4 instalments rather than all at once, based on the estimated income for the year. For Tax Year 2026-27 (FY 2026-27), the first instalment of advance tax must be paid by June 15, 2026.

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Advance tax requires taxpayers to pay tax on income during the financial year in which it is earned rather than waiting until the end of the year.

With the advance tax deadline approaching, taxpayers should take a few important steps to avoid interest penalties.

1. Estimate your total income

Calculate your expected income from all sources for the financial year, including salary, business or professional income, capital gains, rental income and interest earnings. Claim eligible deductions under Chapter VI-A while computing taxable income.

2. Compute tax liability

Apply the applicable income tax rates to determine your estimated tax liability. Deduct available tax credits such as TDS, TCS, relief, and any MAT/AMT credits to arrive at the net advance tax payable.

3. Check whether advance tax applies

Advance tax is mandatory if the estimated tax liability for the financial year is ₹10,000 or more.

4. Are senior citizens required to pay advance tax?
Not always. As per income tax rules, resident senior citizens aged 60 years or above are exempt from paying advance tax if they do not have income from business or profession. However, senior citizens earning income from business or professional activities may still be liable to pay advance tax if their tax liability exceeds ₹10,000 in a financial year.
5. Who should pay special attention before June 15?

  • Salaried employees with significant capital gains

  • Freelancers and consultants

  • Traders and investors

  • Landlords earning rental income

  • Individuals with large fixed deposit interest income

  • Senior citizens with business or professional income

What are the consequences of failure to deposit advance tax?

Any non-payment or short-payment of advance tax will attract interest at the rate of 1% per month each under sections Sections 424 and 425 of the Income-tax Act, 2025 (formerly Sections 234B and 234C of the Income-tax Act, 1961).

"Before the advance tax deadline, taxpayers should review all sources of income, including salary, business income, capital gains, rental income, interest and dividends, and calculate their tax liability after accounting for deductions, TDS and TCS. Advance tax generally becomes payable if the net tax liability exceeds ₹10,000 in a financial year. Taxpayers should also check for any income not covered by TDS, assess any shortfall in tax paid so far, and ensure that at least 15% of the estimated annual tax liability is paid by June 15. Timely payment helps avoid interest charges for non-payment, short payment or delay in payment of advance tax," said CA Abhishek Soni, CEO & Co-founder, Tax2win.

Deadlines for advance tax payments

Due DateAdvance Tax Requirement (Cumulative)What to Pay
June 1515% of total advance taxFirst instalment (15%)
September 1545% of total advance taxPay after adjusting tax already paid
December 1575% of total advance taxPay after adjusting earlier instalments
March 15100% of total advance taxFinal balance after all adjustments
Have an ITR filing query for AY 2026-27? We will try to get them answered by experts. Write to sangeeta.ojha@rksv.in
For all personal finance updates, visit here

About The Author

sangeeta-ojha.webp
Sangeeta Ojha is a business and finance journalist with experience across leading media platforms like Mint and India Today. She has built a reputation for covering a wide range of personal finance topics, including income tax, mutual funds, insurance, savings and investing.

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