The Income Tax Act, 2025 introduces comprehensive advance tax rules effective from Tax Year 2026-27 onwards. According to reports from Mint, the new act came into force on 1 April 2026, replacing previous advance tax provisions. Under this framework, taxpayers whose estimated tax liability after adjusting TDS is ₹10,000 or more must pay advance tax in instalments throughout the tax year instead of waiting until the end.
As reported by Mint, any taxpayer including individuals, firms, or companies whose estimated tax liability for the tax year is ₹10,000 or more after adjusting TDS is required to pay advance tax. However, individuals earning only salary income do not need to pay advance tax because their employer deducts TDS. Additionally, resident senior citizens aged 60 years or above are exempt from advance tax if they do not have income from business or profession.
According to Mint, taxpayers not covered under the presumptive taxation scheme must pay advance tax in four instalments: 15% by 15 June, 45% by 15 September, 75% by 15 December, and 100% by 15 March. Taxpayers opting for the presumptive taxation scheme must pay 100% by 15 March. For those under presumptive taxation, advance tax is payable in one instalment by the March deadline.
As detailed in the Mint report, taxpayers should estimate total income from all sources including salary, house property, business or professional income, capital gains, and other sources. The calculation involves adding total income, subtracting eligible deductions and applicable rebate, calculating income tax based on selected regime, adding surcharge and 4% health and education cess, subtracting eligible tax reliefs, and subtracting TDS, TCS, advance tax already paid, and MAT/AMT credit. The remaining amount represents the advance tax liability.
According to Mint, taxpayers can revise their income estimate during the year if income increases after instalments. There is generally no requirement to separately submit revised estimates to the tax department. Capital gains are included in advance tax calculations, though tax on gains arising after instalment due dates can be paid through remaining instalments. Advance tax can be paid from another person's bank account with proper PAN mention, and it appears in Form 26AS within 3-4 working days after payment.
