Advance tax final instalment deadline: Step-by-step guide on how a taxpayer can clear their dues online

The deadline for paying the fourth and final instalment of advance tax for the financial year 2025–26 is 15 March 2026. Taxpayers must clear their advance tax dues by this date to avoid future penalties.

Advance tax is a “pay-as-you-earn” system in India, where taxpayers pay estimated tax in instalments during the financial year, instead of a lump sum at the time of filing their income tax return.

During a financial year, taxpayers are required to pay their total income tax in four instalments, at fixed percentages and dates, as set by the Income Tax (IT) Department.

However, taxpayers must estimate their total income at the beginning of the financial year and pay accordingly. Failure to pay on time results in penalties, not just a flat penalty, calculated on the shortfall and delay.

How to pay advance tax online?

Here's a step-by-step guide on how a taxpayer can clear their advance tax dues online.

Step 1: Visit the Income Tax Department website. (Direct link: https://www.incometax.gov.in/iec/foportal/)

Step 2: Select the “E-pay” option from the Quick Links dropdown.

Step 3: Enter your details, such as PAN and mobile number, then click on the “continue” option.

Step 4: Enter the verification OTP received on your registered mobile phone number, then select “proceed.”

Step 5: Select the “Income Tax” option and click on the “continue” option.

Step 6: Enter the remaining details like phone number, address, assessment year, email ID, and bank name.

Step 7: You will then be directed to a payment page.

Once the system receives a taxpayer's necessary details and outstanding dues, the advance tax instalment payment will be completed. Then, you will receive a challan number. If you seek more information related to this, you can also visit the official Income Tax Department website.

Who is required to pay advance tax?

Paying advance tax is mandatory for all taxpayers whose estimated tax liability for the financial year is ₹10,000 or more after adjusting for tax deducted at source (TDS), tax collected at source (TCS) and any eligible tax credits.

Here's a list of individuals and entities who are required to pay advance tax:

— Freelancers and consultants with taxable income above the threshold

— Individuals receiving rental income from property

— Taxpayers with capital gains from stocks, mutual funds or other assets in the quarter in which the sale occurred

— Individuals earning interest income from fixed deposits or other sources

— Salaried individuals who have additional income not covered by TDS

Exemption: Resident senior citizens (aged 60 years or above) who do not have income from business or profession are not required to pay advance tax.

Advance tax FY25-26 schedule

The Income Tax Department has set four stages during the year, in which taxpayers can clear their advance tax. Here's the full schedule:

• First instalment on 15 June: 15% of total tax liability
• Second instalment on 15 September: 45% of total tax liability
• Third instalment on 15 December: 75% of total tax liability
• Fourth instalment on 15 March: 100% of total tax liability