Advance tax, self-assessment tax and interest
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Updated 03 Oct 2026
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AI summary
Who pays advance tax, the four instalment dates, and the 1% a month interest if you pay late.
4 sections
Who pays
Anyone whose tax for the year, after TDS and TCS, is ₹10,000 or more. Resident senior citizens with no business income are exempt.
Instalments
| Due by | Cumulative tax to pay |
|---|---|
| 15 June | 15% |
| 15 September | 45% |
| 15 December | 75% |
| 15 March | 100% |
Presumptive taxpayers (sections 58–59) can pay 100% by 15 March.
Interest
| Old | New | For | Rate |
|---|---|---|---|
| 234A | 423 | Filing the return late | 1% a month on unpaid tax |
| 234B | 424 | Paying less than 90% of tax as advance tax | 1% a month from 1 April to payment |
| 234C | 425 | Missing or short instalments | 1% a month for 3 months per instalment (1 month for the last) |
Self-assessment tax (section 266, old 140A)
Any balance tax plus interest must be paid before filing the return. Use challan ITNS 280 on the e-pay tax page and choose the right tax year and minor head (300 for self-assessment, 100 for advance tax).
Record advance tax payments in Hisab Central as a Payment voucher to an "Advance Income Tax" ledger under Current Assets. At year end, set it off against the provision for tax with a Journal.
Sources
PreviousITR forms and due dates Next in ITR & Compliance AIS, Form 168 (26AS) and income tax notices
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