Advance Tax Deadline Today, On June 15: Who Needs To Pay, Who Is Exempt, And What Happens If You Miss It?

Advance Tax Deadline June 15: If you have other sources of income than your salary, today is a date to mark on your calendar. June 15 is the last date to pay the first instalment of advance tax of financial year 2026-27. Taxpayers who are liable to pay advance tax must pay 15 per cent of their estimated annual tax liability on or before the end of the day to avoid interest charges later. Many people think advance tax is only for business owners, but that’s not always the case. Salaried employees, freelancers, landlords and even investors may need to pay advance tax if their tax liability is above a certain limit.

What is advance tax?

Advance tax is simply an income tax that is paid during the financial year itself, instead of waiting until the end of the year to pay the whole amount.

The system is a ‘pay-as-you-earn’ system, where taxpayers pay tax in instalments based on their estimated annual income. It is mainly relevant for income not fully covered by Tax Deducted at Source (TDS).

The advance tax schedule for FY27 will be as follows:

June 15: 15 percent of total estimated tax liability
September 15: 45% of the total payment
December 15: 75% of cumulative payment due
March 15: Cumulative payment 100%

Who Needs To Pay Advance Tax?

If the amount of estimated tax payable is more than Rs 10,000 in a financial year after adjusting the credit for TDS and TCS, advance tax is applicable to you.

The following taxpayers are among those who may be subject to advance tax:

Salaried employees with other income

You may think you are covered if your salary income is already subject to TDS. But you may have to pay advance tax if you have income from

• Capital gains on stocks, mutual funds or property
• Income from rental property
• Interest on Fixed Deposits
• Freelance assignments or consulting work
• Any other side cash
• Professionals and Freelancers

Most of the self-employed professionals, like doctors, lawyers, consultants, designers, content creators, etc., are usually required to pay advance tax if their estimated tax liability is above the specified threshold.

Business Owners

An enterprise, partnership firm and other business establishments need to estimate their annual profits and pay advance taxes accordingly.

Investors

Gains from sale of stocks, mutual funds or property can also trigger an advance tax liability in the same financial year in which the gains are made.

Who Is Exempt? 

Not everyone has to worry about the deadline today.

Senior citizens (60 years and above) are not liable to pay advance tax in case they have no income from business or profession.

However, if you are a senior citizen and are either a professional or own a business, you will still have to pay advance tax.

How To Make Advance Tax Payments Online?

The taxpayers can make the payment through the e-filing portal of the income tax department.

The process includes:

1. Log in to the income tax e-filing website.
2. Click on ‘e-File’ and choose ‘e-Pay Tax’.
3. Click New Payment.
4. Click on Income Tax and choose Advance Tax.
5. Choose Assessment Year 2026-27.
6. Select Minor Head Code 100 for Advance Tax.
7. Enter the tax amount along with the surcharge or cess, if any.
8. Choose a payment method and finalise the payment.

What Happens If You Miss The June 15 Deadline For Advance Tax Payment?

There is no set penalty for missing the deadline, but it can be costly due to interest charges.

Interest can be charged for delays or shortfalls in payment of advance tax as per the Income Tax Act.

Interest on missed or delayed instalments may be charged at 1% per month on the amount of the shortfall.
If the total advance tax paid during the financial year is less than 90% of the final tax liability, then further interest may be payable.

The good news is that taxpayers who have unexpected income, such as capital gains, in the year can generally pay the tax in subsequent instalments and may receive relief in certain circumstances, depending on when and how the income was disclosed.

Advance Tax Payment Today: How Much You Owe Before Interest Starts To Accrue

If your estimated tax liability for FY27 is Rs 10,000 or more after accounting for TDS and TCS, then it is worth checking whether you are liable to pay advance tax. Pay the first instalment by June 15 to save on interest and stay tax-compliant all year.

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