Instalments of advance tax and due dates
[Section-408 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 408(1) of Income Tax Act 2025
408(1) All the assessees who are liable to pay advance tax, other than the assessee referred to in sub-section (2), shall pay the same on the current income calculated in the manner laid down in section 405 in four instalments during each tax year and the due date of each instalment and the amount of such instalment shall be as specified in the Table below.
Table
| Sl. No. | Due date of instalment | Amount payable |
|---|---|---|
| A | B | C |
| 1 | On or before the 15th June. | Not less than 15% of such advance tax. |
| 2 | On or before the 15th September | Not less than 45% of such advance tax, as reduced by the amount, if any, paid in the earlier instalment. |
| 3 | On or before the 15th December. | Not less than 75% of such advance tax, as reduced by the amount or amounts, if any, paid in the earlier instalment or instalments. |
| 4 | On or before the 15th March | The whole amount of such advance tax, as reduced by the amount or amounts, if any, paid in the earlier instalment or instalments. |
Section 408(2) of Income Tax Act 2025
408(2) An assessee, who declares profits and gains as per the provisions of section 58(2) (Table: Sl. No. 1 or 3), shall pay the whole amount of advance tax on the current income, calculated in the manner laid down in section 405 during each tax year, on or before the 15th March.
Section 408(3) of Income Tax Act 2025
408(3) Any amount paid by way of advance tax on or before the 31st March, shall be treated as advance tax paid during the tax year ending on that day for all the purposes of this Act.
FAQs on Section 408 of Income Tax Act 2025
Who is required to pay advance tax under Section 408(1)?
All assessees liable to pay advance tax, except those covered under Section 408(2), must pay it in four instalments as per the specified due dates.
What are the due dates for advance tax instalments under Section 408(1)?
The due dates are:
- 15th June
- 15th September
- 15th December
- 15th March
How much advance tax must be paid by 15th June?
Not less than 15% of the total advance tax liability.
How much should be paid by 15th September?
At least 45% of the advance tax, reduced by any amount paid earlier.
What is the requirement for 15th December?
At least 75% of the total advance tax, after reducing earlier instalments.
How much should be paid by 15th March?
The entire advance tax due, after accounting for all previous instalments.
Who is covered under Section 408(2)?
Assessees who declare profits and gains under Section 58(2), Table Sl. No. 1 or 3.
What is the advance tax payment requirement under Section 408(2)?
Such assessees must pay the full amount of advance tax on current income on or before 15th March.
What if an assessee pays advance tax on or before 31st March?
It is treated as advance tax paid for that tax year for all purposes under this Act.
Can advance tax be paid in a single instalment?
Yes, especially for those under Section 408(2), they must pay the entire advance tax by 15th March.
What is meant by ‘current income’ in this context?
It refers to income estimated for the current tax year, calculated as per Section 405.
Does the advance tax paid include earlier instalments?
Yes, each subsequent instalment considers the amount already paid in previous instalments.
Is there any consequence for missing an instalment?
Yes, non-compliance can attract interest or penalty as per other provisions of this Act.
Is advance tax applicable to individuals and companies alike?
Yes, unless specifically exempted or covered under special provisions like Section 408(2).
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