Advance tax deadline September 15: What happens if you missed the previous instalment payment?

Taxpayers who missed the first advance tax instalment deadline on June 15, 2026, still have options to limit the financial impact. While certain individuals are required to pay their tax liability in scheduled instalments during the specified financial year, missing the due date does not close the window entirely.

Though, not paying advance tax by the stipulated due date does not attract additional penalty, any delay in payment can attract interest under Sections 234B and 234C of the Income-tax Act. Therefore, taxpayers are advised to clear their dues on time to avoid additional interest and other complications.

What is advance tax?

Advance tax requires taxpayers to pay tax on income during the financial year in which it is earned, rather than waiting until the end of the year.

It is mandatory for individual taxpayers and entities whose net tax liability, after accounting for tax deducted at source (TDS), tax collected at source (TCS), and tax credits, is ₹10,000 or more.

What to do if you missed June 15 deadline?

If you missed the June 15 advance tax deadline, you can still pay the installment, along with any applicable interest. The upcoming instalment is due on September 15, but missing the previous due date does not mean you can skip it.

For example, suppose a person's estimated advance tax liability for FY 2026-27 is ₹1 lakh. The first instalment, due on June 15, is 15% of the total liability, or ₹15,000. If the taxpayer misses this deadline, they can still pay ₹15,000 later, along with any applicable interest. The upcoming instalment, due on September 15, would be 45% of the total liability, or ₹45,000, taking the cumulative advance tax payment to 60% of the estimated liability.

How much interest is applicable for late payment?

If advance tax is not paid according to the prescribed quarterly deadlines, interest under Section 234C is levied at 1% per month on the shortfall amount. Hence, it is advisable to clear the dues as soon as possible, or else the interest will keep piling on the outstanding tax dues, which would eventually hurt your wallet.

“Even a delay of a few days attracts 1% interest for one month on the unpaid amount, because any fraction of a month is treated as a full month for tax computation,” said Niresh Maheshwari, Director of Wealth Wisdom India pvt ltd.

If the taxpayer fails to pay at least 90% of their total tax liability by March (next year), interest under Section 234B comes into effect. In such cases, simple interest is charged at 1% per month on the unpaid amount, starting from April 1 (next year), and continuing until the payment is made.

“Most taxpayers cannot have the interest under these provisions waived pursuant to guidelines, and consequently, the amount of interest will be automatically calculated during your income tax return preparation,” he added.

Advance tax payments deadlines for FY 2026-27

Here's the schedule for advance tax instalments payment for the current financial year, i.e FY 2026-27.

• June 15: 15% of the advance tax must be paid.
• September 15: 45% of the advance tax must be paid, after deducting any already paid taxes.
• December 15: 75% of the advance tax must be paid, after deducting any taxes that have already been paid.
• March 15: The remaining advance tax balance must be cleared, after deducting any already paid taxes.

It is mandatory for some individuals to pay advance tax, including freelancers and consultants, individuals receiving rental income from property, and salaried individuals who have additional income that is not fully covered by TDS, such as profits from the sale of stocks, cryptocurrency gains, and rental income.