India's Advance Tax Calendar 2026–27: Due Dates, Rules & FAQs

Advance Tax Rules Under New Law

India's advance tax system has been carried forward largely intact under the Income-tax Act, 2025, which replaces the earlier 1961 legislation. The new law retains the core framework while reorganising how the provisions are drafted and presented. The changes are structural and administrative rather than policy-driven, aimed at making the statute easier to interpret and administer. Provisions covering advance tax paid voluntarily by taxpayers are now separated from those arising out of directions issued by the Assessing Officer.

Threshold and Computation Explained

The payment threshold stays the same. Under Section 404, advance tax applies where the estimated liability for the year is INR 10,000 or more. Section 405 sets out the computation method: taxpayers estimate their total tax liability for the financial year and subtract expected tax deducted at source or tax collected at source credits. The balance is payable in instalments. By way of illustration, a business estimating a INR 1 million liability with INR 300,000 in expected TDS credit would pay INR 700,000 as advance tax. TDS or TCS credits can be counted only in specified circumstances, and certain taxpayers may need to factor in net agricultural income where the Finance Act, 2026 requires it.

What Changes for Businesses

The shift from "Assessment Year" to "Tax Year" is the most visible terminological change, but it does not alter when or how advance tax is paid. Taxpayers continue to pay during the same financial year in which income is earned, and the quarterly instalment schedule is unchanged. The June 15, 2026 deadline therefore follows the familiar pattern. For companies, this means quarterly estimation, provisioning and cash flow processes can continue as before, though ERP and accounting systems may need updating to reflect the new terminology. Tax teams should also review revised section references and reporting requirements. Income earned before April 1, 2026 re…