Advance Tax Instalment and Interest Calculator — Tax Year 2026-27
Enter your tax for the year and what you paid by each due date. The calculator shows the required instalments, the interest for deferment under section 425 and the interest for shortfall under section 424.
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Who has to pay, and when
| Rule | Provision |
|---|---|
| Advance tax is payable if tax for the year, after TDS and TCS, is ₹10,000 or more | Sections 404, 405 |
| A resident aged 60 or more with no business or professional income need not pay advance tax | Section 403(3) |
| Instalments: at least 15% by 15 June, 45% by 15 September, 75% by 15 December, 100% by 15 March | Section 408(1) |
| Presumptive income under section 58(2) (Table Sl. No. 1 or 3): whole amount by 15 March | Section 408(2) |
| Payments made by 31 March count as advance tax for the year | Section 408(3) |
How the interest is worked out
Section 425, deferment. For each instalment, the shortfall between the required share of tax due on returned income and the amount paid by that date attracts a flat 3% (June, September, December) or 1% (March). No interest arises for June if at least 12% was paid, or for September if at least 36% was paid. For presumptive taxpayers, 1% applies to any shortfall at 15 March.
Section 424, shortfall. If advance tax paid by 31 March is less than 90% of the tax, simple interest of 1% for every month or part of a month runs from 1 April 2027 on the unpaid amount, until it is paid (section 424(4)) or income is determined.
Rounding. Under rule 269 of the Income-tax Rules, 2026, the amount on which interest is charged is rounded down to the nearest ₹100, and any part of a month counts as a full month.
Assumptions this calculator makes
- “Tax on your total income” is used both as the tax due on returned income (section 425) and as the assessed tax (section 424). If an assessment changes the tax, interest changes too.
- The balance is paid in full on the self-assessment date you enter.
- For the section 425(4) waiver, the planner treats the unforeseen tax as paid in the remaining instalments if payments made after the last instalment before that income arose, up to 31 March, are at least equal to it.
- Interest for late filing under section 423 is not included.
Frequently asked questions
Do salaried people pay advance tax?
Only if tax after TDS is ₹10,000 or more, for example because of rent, interest or capital gains that the employer does not deduct tax on.
Is section 425 interest charged per month?
No. Under the 2025 Act it is a flat 3% of the shortfall for each of the first three instalments and 1% for the March instalment.
Does paying on 31 March avoid interest?
It counts as advance tax, so it can avoid section 424 interest, but section 425 still looks at what was paid by 15 March.
Do senior citizens pay advance tax?
A resident aged 60 or more at any time in the tax year with no business or professional income is not required to (section 403(3)).
Can I avoid interest on a capital gain I could not foresee?
Yes, if you pay the tax on it in the remaining instalments or by 31 March. Section 425(4) waives interest on the resulting shortfall.
Sources
Income-tax Act, 2025, sections 58(2), 403 to 408, 424 and 425, Gazette of India, 21 August 2025. Income-tax Rules, 2026, rule 269, notified 20 March 2026.
General educational tool for tax year 2026-27, not tax advice. The interest computed in your return or an intimation is what applies.
The concept behind the number
This calculator gives you a figure. These pages explain the rules behind it and work through the decisions.