The advance tax payment system operates through four quarterly instalments throughout the financial year, with specific deadlines for each payment. According to reports from Mint, the schedule includes 15 June (15% of tax liability), 15 September (45% of tax liability minus advance tax already paid), 15 December (75% of tax liability minus advance tax already paid), and 15 March 2026 (100% of tax liability minus advance tax already paid). March 2026 marks the most critical deadline as it represents the 4th and final instalment requiring taxpayers to discharge 100% of their estimated tax liability for FY 2025-26. As per recent compliance guides, this deadline is particularly crucial as it finalizes the tax liability for the financial year and serves as a financial checkpoint for taxpayers under both Income Tax and GST laws. The March 2026 Compliance Calendar includes additional key deadlines: GSTR-1 due March 11 for February 2026 supplies, GSTR-7 and GSTR-8 due March 10 for reconciliation, GSTR-3B due March 20 for monthly filers, TDS/TCS deposit due March 7, PF and ESI payments due March 15 (since Sunday falls on 15th, complete by Friday, March 13), and challan-cum-statements due March 28 for applicable TDS sections.
Advance tax applies to taxpayers with annual tax liability exceeding ₹10,000 after TDS, as reported by Mint. The Income Tax Department specifies that every person whose estimated tax liability for the financial year is ₹10,000 or more must pay taxes in advance. Notably, resident senior citizens aged 60 years or above without income from business or profession are exempt from advance tax requirements. Taxpayers under presumptive taxation schemes (Sections 44AD and 44ADA) who have not paid advance tax in earlier instalments must pay the entire liability in this single instalment by March 15, 2026. Unlike regular taxpayers who pay advance tax in four instalments, presumptive taxpayers get relaxation but must ensure full payment by this date to avoid interest under Section 234C. The March 2026 Compliance Calendar specifically notes that private limited companies, LLPs, firms, proprietorships, GST-registered businesses, employers registered under PF, ESI & Professional Tax, OIDAR service providers, and non-resident taxpayers must all complete their respective compliance requirements during this critical month.
Advance tax payments can be made online through the Income Tax Department's e-filing portal without logging into the main portal. According to Mint, taxpayers must visit the e-filing portal, select 'e-Pay tax' under Quick Links, enter PAN details, and choose 'Advance Tax (100)' as the payment type. The process requires entering assessment year details, selecting payment method, and completing the transaction to receive an acknowledgement receipt. For the March 2026 deadline, taxpayers must compute 100% of estimated tax liability for FY 2025-26, deduct TDS credits and advance tax already paid, and deposit the balance by March 15, 2026. As per recent compliance guides, proper planning, timely payments, and accurate return filing are essential to ensure smooth financial year closure. The March 2026 Compliance Calendar emphasizes that taxpayers should estimate final advance tax liability for FY 2025-26 two weeks before the due date, prepare TDS payment files and approvals, and reconcile payroll with PF and ESI calculations to ensure complete compliance.
Missing advance tax payment deadlines results in interest under section 234B at 1% per month for default in payment, as reported by Mint. Additionally, interest under section 234C is levied for deferment of advance tax payments. The interest is calculated as simple interest and applies if advance tax instalments are not paid within specified due dates. For the March 15 deadline, if the payment is missed, interest under Section 234C at 1% per month applies on the shortfall for one month. If total advance tax paid is less than 90% of assessed tax, interest under Section 234B at 1% per month applies from April 1 until payment. Recent compliance guides emphasize that any shortfall may result in interest under Sections 234B and 234C, making this deadline particularly critical for taxpayers. The March 2026 Compliance Calendar warns that March is the financial year closing month, increasing reconciliation risks, and emphasizes the importance of verifying advance tax computations to avoid interest under Sections 234B and 234C.