Missed advance tax payment in June 2026? Here's what you should do in September

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 second instalment of advance tax must be paid by September 15, 2026.

What is advance tax?

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.

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).

"If you missed the June 2026 advance tax instalment, you should not wait until the next financial year to pay it. Recalculate your estimated tax liability for Tax Year 2026-27, considering your total income, TDS/TCS and deductions, and pay the required amount by the 15 September 2026 deadline," said CA Abhishek Soni, CEO & Co-founder, Tax2win.

"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 tax and investment expert Balwant Jain.

For regular taxpayers, 45% of the total advance tax liability should be paid cumulatively by 15 September.

"If you missed the June instalment, you may also have to pay interest for the shortfall under the applicable provisions of the Income-tax Act, 2025. For example, if your estimated advance tax liability after TDS is ₹1 lakh and you paid nothing in June, you should aim to pay ₹45,000 by 15 September, subject to your actual tax position," said CA Abhishek Soni.

Advance tax payments deadlines for Tax Year 2026-27