Neutral impactEconomy
Advance tax under Income Tax Act, 2025: Who needs to pay, deadlines and how to calculate it
Mint 6 hrs ago·18 Aug 2026, 3:05 pm
Advance tax is a way for taxpayers to pay their income tax in installments throughout the year rather than a single lump sum at the end. The new rules under the Income Tax Act, 2025, apply to the upcoming Tax Year 2026–27. This system ensures a steady flow of revenue for the government and helps taxpayers manage their cash flow better.
For investors, understanding these deadlines is crucial to avoid penalties. The tax is calculated based on your estimated total income for the year. Missing a payment deadline can lead to interest charges and other compliance issues. It is important to review your financial situation regularly to ensure you meet these obligations on time.
Investors should keep an eye on the specific due dates for each installment. Planning your finances around these dates can help you avoid last-minute stress. Staying informed about tax regulations ensures you remain compliant and can focus on your investment strategy without worrying about tax-related hurdles.
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