September 15 advance tax deadline: What taxpayers need to know
What's the story
Taxpayers who missed the first advance tax installment deadline on June 15, 2026, can still minimize the financial impact. Advance tax is a system where taxpayers pay tax on their income during the financial year in which it is earned. It is mandatory for individual taxpayers and entities with a net tax liability of ₹10,000 or more after accounting for TDS, TCS, and tax credits.
Payment options
Taxpayers can still pay the installment with interest
If you missed the June 15 advance tax deadline, you can still pay the installment along with any applicable interest.
The next installment is due on September 15, but missing the previous due date doesn't mean it can be skipped.
For instance, if a person's estimated advance tax liability for FY 2026-27 is ₹1 lakh and they miss the first installment of ₹15,000 due on June 15, they can still pay later with interest.
Interest implications
Interest under Section 234C and Section 234B
If advance tax isn't paid as per the prescribed quarterly deadlines, interest under Section 234C is levied at 1% per month on the shortfall amount.
Niresh Maheshwari, Director of Wealth Wisdom India Pvt Ltd, said "Even a delay of a few days attracts 1% interest for one month on the unpaid amount."
If taxpayers fail to pay at least 90% of their total tax liability by March next year, interest under Section 234B comes into effect.
Payment schedule
Advance tax installment payment schedule for FY 2026-27
The advance tax installment payment schedule for the current financial year (FY 2026-27) is as follows:
On June 15, taxpayers were required to pay 15% of the advance tax.
The next installment is due on September 15, which should be 45% of the total liability after deducting any already paid taxes.
The third installment is due on December 15 (75% of total liability), and March 15 marks the deadline for clearing the remaining balance after deducting already paid taxes.