The third instalment of advance tax for the financial year 2025–26 is due on December 15, and taxpayers who fail to pay on time may incur interest and penalties under the Income Tax Act, 1961. Advance tax, often described as “pay-as-you-earn” tax, is collected in instalments through the year to help the government maintain steady revenue inflows and prevent last-minute, large tax payments at the end of the year. Advertisement

Under the law, advance tax applies to individuals whose estimated net income tax liability exceeds ₹10,000 in a financial year, after factoring in tax deducted at source (TDS). Payments must be made across four instalments:

> 15% by June 15

> 45% by September 15

> 75% by December 15

> 100% by March 15

By the upcoming deadline, taxpayers must have paid at least

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