September 15, 2026, was an important deadline for taxpayers whose estimated annual income tax liability, after adjusting for TDS and TCS, is Rs 10,000 or more. The date marked the deadline for paying the second instalment of advance tax for the financial year 2026-27.
Taxpayers who deposited the required advance tax on time can avoid an additional interest burden arising from delayed payment. Those who failed to pay the applicable amount may have to pay interest as per the relevant tax provisions.
This year, taxpayers also need to pay attention to a change in the tax-payment process. The Income Tax Act 2025 applies to the tax year 2026-27 and subsequent payments. Therefore, taxpayers making advance tax payments through the income tax portal need to select the correct tax year, 2026-27, instead of using the earlier assessment-year format.
What Is Advance Tax?
Advance tax refers to paying estimated income tax in instalments during the year rather than paying the entire liability at the end of the year. It is commonly described as a pay-as-you-earn system.
The requirement is not limited to business owners. Salaried individuals, freelancers, professionals and other taxpayers can also be required to pay advance tax if their estimated tax liability after adjusting for TDS and TCS is Rs 10,000 or more.
How Much Advance Tax Has to Be Paid?
Advance tax is paid in instalments during the financial year. Up to 15 per cent of the total advance tax liability was required to be paid by June 15, while the cumulative payment had to reach 45 per cent by September 15.
The next instalment takes the cumulative payment to 75 per cent by December. The remaining liability is generally payable by March 15, 2027, taking the total advance tax payment to 100 per cent.
The applicable payment schedule should be followed according to the tax rules and any changes or extensions announced by the authorities.
What Changed for Tax Year 2026-27?
The introduction of the Income Tax Act 2025 has brought a change in the way taxpayers identify the applicable law and tax year while making payments.
According to the Income Tax Department portal, the Income Tax Act 2025 applies to the tax year 2026-27 and subsequent payments. Payments relating to earlier years can continue to be made under the applicable law for those years.
As a result, taxpayers need to ensure that they select both the correct Income Tax Act and the correct tax year while making an advance tax payment. Simply entering the required amount is not enough if the wrong tax-year or act is selected.
Expert Advice on Advance Tax Payment
According to media reports, Himank Singla, partner at SBHS & Associates, said taxpayers should view the September 15 deadline as the point at which their cumulative advance tax payment reaches 45 per cent.
He advised taxpayers to estimate their full-year income realistically, account for TDS and TCS, and consider both income already earned and expected income for the remaining part of the year.
He also highlighted the importance of selecting the Income Tax Act 2025 and tax year 2026-27 while making advance tax payments for the current tax year.
How to Pay Advance Tax Online
Taxpayers can make their advance tax payment through the Income Tax e-filing portal. After logging in, they need to open the e-File section and proceed to e-Pay Tax.
The Income Tax Act 2025 should then be selected, followed by Tax Year 2026-27 and New Payment. Under the tax-payment section, taxpayers need to select income tax and the applicable payment type.
The required details, including tax, surcharge, cess, interest, penalty and other applicable amounts, should be entered carefully. After reviewing the total amount, the payment can be completed using the available online payment options.