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Advance Tax FY 2025–26: Deadlines, Rules & Penalties Every Taxpayer Must Know

Advance tax for FY 2025–26 comes with strict quarterly deadlines, penalties, and a “pay-as-you-earn” system. Staying updated helps taxpayers avoid interest, manage cash flow smartly, and maintain financial discipline throughout the year.

Published By: Aishwarya Samant
Published: December 2, 2025 12:01:42 IST

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Advance Tax Deadlines for FY 2025–26

The clock is ticking! For FY 2025-26, advance tax payments are due on December 15, 2025, and March 15, 2026. Regular taxpayers must clear their dues in four installments to dodge penalties.
Stay ahead, don’t let interest catch you off guard!

Quarterly Advance Tax Payment Schedule

Notification to taxpayers, your FY has assigned you a “mini-deadline series,” and missing an episode can be costly! For the fiscal year 2025–26, individuals, HUFs, companies, and other non-audit taxpayers are to tackle advance tax in four small installments. The first date is June 15, 2025, and you should drop 15% of your total tax liability, consider it the warm-up round. By September 15, 2025, the tax burden rises to 45%, so no sleeping!

The hardest part comes on December 15, 2025, when 75% of the tax must be paid, great if you love year-end rush. And lastly, the last part falls on March 15, 2026, asking for the full 100% payment. Being up to date not only avoids penalties but also saves you from last-minute stress. Consider it as your financial fitness training, four steps, one non-stressful year!

What Is Advance Tax? 

Advance tax is the income tax that taxpayers pay to the government over the entire financial year, not waiting for the end of the year. Consider it a “pay-as-you-earn” type of system. If the total tax liability of the year is more than ₹10,000 (after TDS), then the taxpayer is bound to pay advance tax in four instalments, each in June, September, December, and March. This method not only ensures the government a constant flow of revenue but also saves taxpayers from paying a huge sum at the end of the year all at once.

Basically, only salaried people with correct TDS are not usual advance tax payers; others are freelancers, business owners, and those having extra income.

Who Must Pay Advance Tax?

Anyone whose tax liability exceeds ₹10,000, including:

  • salaried individuals (if TDS doesn’t cover full tax)

  • freelancers

  • business owners

  • investors with capital gains

Exception: Senior citizens (60+), with no business income, don’t have to pay advance tax.

How Is Advance Tax Paid?

In four instalments:

  • 15% by June 15

  • 45% by Sept 15

  • 75% by Dec 15

  • 100% by Mar 15

Missed Your Advance Tax Dates? Here’s The “Oops Fee”!

When you miss your advance tax deadlines, it’s similar to missing your gym workouts, you may get away with it, but the consequences are worse later. Under Section 234C, the government is taking a very small 1% a month on the amount that you have paid short for every installment that you missed (or “missed”). After that comes Section 234B, which comes into play when you are not able to pay 90% of your entire tax by March 31 at least, yes, another 1% a month.

Consider it as the government’s subtle communication saying, “Dear taxpayer, it’s better to pay on time, otherwise, we will remind you… with interest!” Keeping up to date with payments saves both money and worry.

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