Advance Tax Due Dates FY 2026-27: Section 234B & 234C Penalty Guide

Complete guide to Advance Tax payment installments, due dates, calculation methods, and how to avoid interest penalties under Section 234B and Section 234C for FY 2026-27.

Ankit Bansal• Founder, fincalculator.in

26 August 2026

11 min read

Advance Tax Due Dates FY 2026-27: Section 234B & 234C Penalty Guide

Understanding the "Pay-As-You-Earn" Tax System

Many taxpayers assume that income tax is only paid at the end of the financial year when filing the Income Tax Return (ITR) in July. However, under the Advance Tax provisions of the Income Tax Act, 1961, tax must be paid in installments during the year in which the income is earned.

Failing to pay or delaying your quarterly installments attracts mandatory simple interest penalties under Section 234B (1% per month) and Section 234C (1% per month), which can add tens of thousands of rupees to your total tax bill.

Here is your comprehensive roadmap to calculate installments, meet statutory deadlines, and avoid interest penalties in FY 2026-27.

1. Advance Tax Due Dates & Cumulative Percentages

Quarterly Advance Tax Payment Schedule (FY 2026-27)

Due Date	Cumulative Advance Tax Required	Applicable To
On or before June 15, 2026	Not less than 15% of estimated tax	Salaried with other income, non-presumptive businesses
On or before September 15, 2026	Not less than 45% of estimated tax	All non-presumptive taxpayers
On or before December 15, 2026	Not less than 75% of estimated tax	All non-presumptive taxpayers
On or before March 15, 2027	100% of estimated tax	All taxpayers, including 44AD / 44ADA professionals

2. Decoding Penalties: Section 234B vs Section 234C

Section 234C: Deferment of Installments

Levied when there is a shortfall in any individual quarterly installment. Calculated at 1% per month for a 3-month period on the shortfall amount (except for the March installment, which is 1% for 1 month).

Section 234B: Default in Payment of Advance Tax

Levied if less than 90% of assessed tax is paid as advance tax by March 31. Charged at 1% simple interest per month from April 1 of the assessment year until the date of actual tax payment.

3. Step-by-Step: How to Pay Advance Tax Online

Log in to the Income Tax e-Filing Portal

Visit incometax.gov.in and navigate to "e-Pay Tax" under Quick Links or your logged-in dashboard.

Select Assessment Year & Tax Category

Select Assessment Year 2027-28 (for Financial Year 2026-27) and choose "Income Tax (Other than Companies)".

Select Type of Payment: (100) Advance Tax

Select Type of Payment (Minor Head) as "Advance Tax (100)". Do not select Self Assessment Tax (300) during the ongoing financial year.

Pay via Net Banking / UPI / RTGS

Complete the payment through payment gateway or UPI and download Challan Receipt (Form CRN) with BSR Code, CIN, and Challan Number for ITR records.

Authoritative Regulatory References

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Frequently Asked Questions (FAQs)

Who is required to pay Advance Tax in India?

Any taxpayer (salaried, freelancer, business owner, or investor) whose estimated total net tax liability for the financial year exceeds ₹10,000 (after deducting TDS/TCS) is legally required to pay advance tax in four quarterly installments. Senior citizens (aged 60+) without business/professional income are exempt.

What are the Advance Tax installment due dates for FY 2026-27?

For individual taxpayers and corporate entities: 15% by June 15, 45% by September 15, 75% by December 15, and 100% by March 15. For taxpayers opting for Section 44ADA / 44AD presumptive taxation, 100% of advance tax can be paid in a single installment by March 15.

What is the penalty for late payment or underpayment of advance tax?

Interest is charged at 1% simple interest per month (or part of a month) under Section 234C for deferment/shortfall in quarterly installments, and under Section 234B for paying less than 90% of total tax liability before the end of the financial year (March 31).

How do capital gains and dividends affect advance tax?

Since capital gains and unexpected dividends cannot be predicted in advance, the Income Tax Act provides relief: if you earn capital gains after an installment deadline, you must pay the applicable advance tax in the remaining subsequent quarters without triggering retrospective Section 234C interest penalties.

Tags:

#Advance Tax 2026#Section 234B Interest#Section 234C Penalty#Advance Tax Due Dates#Capital Gains Advance Tax#Challan 280 Tax Payment

Understanding the "Pay-As-You-Earn" Tax System

Here is your comprehensive roadmap to calculate installments, meet statutory deadlines, and avoid interest penalties in FY 2026-27.

1. Advance Tax Due Dates & Cumulative Percentages

Quarterly Advance Tax Payment Schedule (FY 2026-27)

Due Date	Cumulative Advance Tax Required	Applicable To
On or before June 15, 2026	Not less than 15% of estimated tax	Salaried with other income, non-presumptive businesses
On or before September 15, 2026	Not less than 45% of estimated tax	All non-presumptive taxpayers
On or before December 15, 2026	Not less than 75% of estimated tax	All non-presumptive taxpayers
On or before March 15, 2027	100% of estimated tax	All taxpayers, including 44AD / 44ADA professionals

2. Decoding Penalties: Section 234B vs Section 234C

Section 234C: Deferment of Installments

Section 234B: Default in Payment of Advance Tax

Levied if less than 90% of assessed tax is paid as advance tax by March 31. Charged at 1% simple interest per month from April 1 of the assessment year until the date of actual tax payment.

3. Step-by-Step: How to Pay Advance Tax Online

Log in to the Income Tax e-Filing Portal

Visit incometax.gov.in and navigate to "e-Pay Tax" under Quick Links or your logged-in dashboard.

Select Assessment Year & Tax Category

Select Assessment Year 2027-28 (for Financial Year 2026-27) and choose "Income Tax (Other than Companies)".

Select Type of Payment: (100) Advance Tax

Select Type of Payment (Minor Head) as "Advance Tax (100)". Do not select Self Assessment Tax (300) during the ongoing financial year.

Pay via Net Banking / UPI / RTGS

Complete the payment through payment gateway or UPI and download Challan Receipt (Form CRN) with BSR Code, CIN, and Challan Number for ITR records.

Advance Tax Due Dates FY 2026-27: Section 234B & 234C Penalty Guide

Understanding the "Pay-As-You-Earn" Tax System

1. Advance Tax Due Dates & Cumulative Percentages

Quarterly Advance Tax Payment Schedule (FY 2026-27)

2. Decoding Penalties: Section 234B vs Section 234C

Section 234C: Deferment of Installments

Section 234B: Default in Payment of Advance Tax

3. Step-by-Step: How to Pay Advance Tax Online

Log in to the Income Tax e-Filing Portal

Select Assessment Year & Tax Category

Select Type of Payment: (100) Advance Tax

Pay via Net Banking / UPI / RTGS

Authoritative Regulatory References

Frequently Asked Questions (FAQs)

Who is required to pay Advance Tax in India?

What are the Advance Tax installment due dates for FY 2026-27?

What is the penalty for late payment or underpayment of advance tax?

How do capital gains and dividends affect advance tax?

Relevant Financial Calculators

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Understanding the "Pay-As-You-Earn" Tax System

1. Advance Tax Due Dates & Cumulative Percentages

Quarterly Advance Tax Payment Schedule (FY 2026-27)

2. Decoding Penalties: Section 234B vs Section 234C

Section 234C: Deferment of Installments

Section 234B: Default in Payment of Advance Tax

3. Step-by-Step: How to Pay Advance Tax Online

Log in to the Income Tax e-Filing Portal

Select Assessment Year & Tax Category

Select Type of Payment: (100) Advance Tax

Pay via Net Banking / UPI / RTGS

Authoritative Regulatory References