Quick answer: The second advance tax instalment for Tax Year 2026–27 is due on or before 15 September 2026. A taxpayer covered by the normal instalment schedule should have paid at least 45% of the estimated advance tax liability by that date, after subtracting tax already paid. Advance tax generally applies when estimated tax payable for the year, after eligible TDS and other credits, is ₹10,000 or more. Eligible presumptive-taxation taxpayers follow a different single-instalment rule.
Verified from: Income Tax Department official guidance under the Income Tax Act, 2025, checked 14 September 2026.
The September instalment matters to salaried people with substantial income outside salary, freelancers, professionals, landlords, investors and businesses. It is not a separate tax. It is an early payment of the income tax expected for the current tax year. The calculation should be refreshed before every instalment because income, deductions, TDS and capital gains can change during the year.
Who must pay advance tax for Tax Year 2026–27?
Under the Income Tax Department’s current guidance, advance tax is payable when the estimated tax payable during the year is ₹10,000 or more. “Tax payable” here means the tax calculated on estimated income after reducing tax expected to be deducted or collected at source and other eligible credits.
You may need to check advance tax even if you receive a salary. Employer TDS is normally based on salary information available to the employer. It may not fully cover:
- interest from savings accounts, fixed deposits or bonds;
- rental income;
- capital gains from shares, mutual funds, property or other assets;
- freelance or consulting receipts;
- business or professional profits;
- dividend or other taxable investment income; and
- income from more than one employer where combined TDS is insufficient.
A resident senior citizen who does not have income chargeable under profits and gains of business or profession may qualify for a statutory exception. Because residency, age and the nature of income matter, confirm the exception against the current law or with a tax professional rather than relying on age alone.
Normal advance tax instalment schedule
| Due date | Cumulative amount normally payable |
|---|---|
| 15 June | At least 15% of estimated advance tax |
| 15 September | At least 45%, less earlier instalment |
| 15 December | At least 75%, less earlier instalments |
| 15 March | 100%, less earlier instalments |
The percentages are cumulative. The September payment is not automatically 45% of the full-year estimate on top of the June payment. Calculate 45% of the current estimated advance-tax liability and subtract advance tax already paid.
Track the date through CheckMatter’s verified advance-tax deadline entry. Tax-related explainers are organised under the Tax & GST category.
How to calculate the second advance tax instalment
- Estimate income for the full tax year. Use actual income received so far plus a reasonable estimate for the remaining months.
- Classify income correctly. Salary, house property, business or profession, capital gains and other sources can follow different computation rules.
- Apply eligible deductions and set-offs. Do not assume a deduction is available without checking the chosen tax regime and current law.
- Calculate income tax. Use the applicable rates, surcharge and marginal relief where relevant.
- Add health and education cess. Include it in total tax liability.
- Subtract expected TDS, TCS and eligible tax credits. Use realistic amounts supported by statements or payer information.
- Check the ₹10,000 threshold. If the resulting advance tax payable is below the statutory threshold, advance tax may not be required.
- Calculate 45% of the current estimate. This is the cumulative target by 15 September.
- Subtract advance tax already paid. The balance is the second instalment.
Illustrative calculation
Suppose a taxpayer estimates total tax including cess at ₹1,20,000. Expected TDS is ₹30,000, leaving estimated advance tax of ₹90,000. The cumulative September target is 45% of ₹90,000, or ₹40,500. If ₹13,500 was paid in June, the second instalment is ₹27,000.
| Estimated tax including cess | ₹1,20,000 |
|---|---|
| Less expected TDS | ₹30,000 |
| Estimated advance tax | ₹90,000 |
| 45% cumulative target | ₹40,500 |
| Less June payment | ₹13,500 |
| September amount | ₹27,000 |
This is only an illustration. Capital-gains timing, special-rate income, brought-forward losses, surcharge and other circumstances can change the computation.
What changed under the Income Tax Act, 2025?
The Income Tax Department says that advance tax for Tax Year 2026–27 is governed by the Income Tax Act, 2025. It also states that the core payment framework and threshold continue, while the new law reorganises and simplifies the provisions. The official help page identifies section 404 for the threshold, section 405 for computation, section 408 for instalments and sections 424–425 for relevant interest concepts.
What did not change: the obligation to estimate tax, account for TDS and pay by instalments remains. The second-instalment target remains 45% by 15 September for taxpayers following the normal schedule.
Special rule for presumptive-taxation taxpayers
The Income Tax Department states that eligible taxpayers using the specified presumptive taxation scheme pay their entire advance tax in a single instalment on or before 15 March. Do not assume every small business or professional qualifies. The section chosen, turnover or receipts, eligible activity and other conditions must be checked.
If you are under a presumptive scheme but also have capital gains or other income, include all relevant facts in the estimate and obtain professional advice where the interaction is unclear.
How to pay advance tax online
- Go to the official Income Tax e-filing portal at incometax.gov.in.
- Open the e-Pay Tax service and enter the required taxpayer details.
- Choose the correct tax year and the Income Tax Act applicable to Tax Year 2026–27.
- Select the advance-tax payment option, not self-assessment tax or another payment type.
- Enter tax, surcharge, cess and other component amounts accurately.
- Select an authorised payment method and review the summary.
- Complete payment and save the challan receipt and CIN or payment reference.
- Later, verify that the payment appears in the relevant tax records.
A generated payment request or CRN can expire. The department’s payment FAQ says that an advance-tax payment linked to a CRN must be completed within 15 days of CRN generation or by 31 March of the current financial year, whichever is earlier. That validity rule does not extend the statutory 15 September instalment deadline.
Checks before you press Pay
- Confirm PAN and taxpayer name.
- Select Tax Year 2026–27, not Assessment Year 2026–27.
- Use the Income Tax Act, 2025 option for the current tax year.
- Confirm payment type is advance tax.
- Review the tax breakup and amount.
- Use only the official portal or an authorised banking route.
- Save the final receipt, not only a screenshot of the payment page.
If identity details or portal records do not match, the Aadhaar update guide can help identify which Aadhaar changes require an online process or a centre visit. A tax payment deadline is not automatically extended while a separate profile issue is being corrected.
What happens if the September instalment is short or late?
The department states that interest for deferment of advance-tax instalments continues under the new Act. Its current FAQ describes interest under section 425, corresponding to old section 234C, and interest under section 424, corresponding to old section 234B, at the applicable monthly rate or specified period. The calculation depends on the amount, timing, assessed tax and statutory exceptions.
If you discover a shortfall after 15 September, update the annual estimate and pay the appropriate amount rather than waiting automatically until December. A later payment may reduce continuing exposure, but it does not necessarily erase interest already triggered.
Income that arises unexpectedly
Capital gains, dividends, a property transaction or a business surge may occur after an earlier instalment date. The law contains rules relevant to income that could not reasonably have been estimated before it arose. Keep transaction dates and calculations. Do not use “unexpected income” as a blanket reason to ignore instalments; the timing and later payment matter.
Documents and records to retain
- working of estimated income and tax;
- TDS and TCS information used in the estimate;
- capital-gains and business-income calculations;
- advance-tax challans and bank confirmation;
- revised estimates prepared for later instalments; and
- professional advice supporting a material tax position.
Official sources
- Income Tax Department: Tax Payments FAQ under the Income Tax Act, 2025
- Income Tax Department: advance-tax definition and instalment table
- Income Tax Department: applicable Act for Tax Year 2026–27 payments
- Income Tax Department: online tax-payment FAQ
Frequently asked questions
Is 15 September 2026 the second advance tax due date?
Yes. The normal cumulative target is 45% of estimated advance tax by 15 September, less the amount already paid.
Does a salaried employee ever pay advance tax?
Yes. It may be required when employer TDS does not cover tax on interest, rent, capital gains, freelance income or other taxable income and the net threshold is met.
Is the ₹10,000 threshold based on gross income?
No. It refers to estimated tax payable after the relevant tax credits, not gross income or turnover.
Can I revise my advance-tax estimate?
Yes. Re-estimate before each instalment using current information and adjust later payments. Keep the working.
Which Act should I select for Tax Year 2026–27?
The Income Tax Department says advance tax for Tax Year 2026–27 is governed by the Income Tax Act, 2025.
Action checklist for 14–15 September
- Estimate full-year taxable income.
- Calculate tax and cess under the applicable regime.
- Subtract expected TDS, TCS and eligible credits.
- Confirm whether net advance tax reaches ₹10,000.
- Calculate the 45% cumulative target.
- Subtract the June advance-tax payment.
- Pay through the official portal by 15 September 2026.
- Save and verify the challan.
- Revise the estimate again before the December instalment.
Effective date: Second instalment due 15 September 2026. Last verified: 14 September 2026.
Correction history: First draft; no corrections recorded.
Tax disclaimer: This article provides general information, not personalised tax advice. Tax calculations depend on income type, regime, deductions, credits and individual facts. Confirm the current law and consult a qualified professional where needed.
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