Advance Tax Second Instalment Due Tomorrow: Taxpayers Must Pay 45% by September 15:

September 15, 2026 (tomorrow), is the last date to pay the second instalment of advance tax for the second quarter for the Financial Year 2026-27 (Assessment Year 2027-28). It is a key deadline for all the taxpayers whose income tax liability is not fully covered through TDS or TCS and who own income from sources other than salary.

However, advance tax payment is not obligatory for everyone. One is only required to pay advance tax when his/her aggregate tax liability exceeds Rs 10,000 after adjustment of tax deducted at source (TDS) and tax collected at source (TCS). According to a tax expert, advance tax is a payment made during the financial year in instalments instead of waiting until the income tax return (ITR) is filed.

Taxpayers liable to pay advance tax must pay the second instalment of advance tax by September 15, 2026. The deadline applies to taxpayers whose estimated tax liability for the financial year meets the prescribed threshold under the Income-tax Act.

Advance tax refers to the payment of income tax in instalments during the financial year instead of paying the entire tax liability at the end of the year. It is commonly referred to as a “pay-as-you-earn” system of taxation.

Under the prescribed advance tax schedule, taxpayers are required to pay their estimated tax liability in four instalments. By June 15, at least 15% of the total advance tax liability is required to be paid. The second instalment, due by September 15, takes the cumulative payment to 45% of the estimated annual tax liability.

The remaining advance tax is payable in subsequent instalments. Taxpayers are required to pay at least 75% cumulatively by December 15, while the entire advance tax liability is generally required to be paid by March 15.

Failure to pay advance tax or paying less than the prescribed amount may result in interest liability under Sections 234B and 234C of the Income-tax Act, subject to the applicable conditions.

Taxpayers should therefore calculate their estimated income and tax liability for the year and ensure that the second instalment is paid by September 15, 2026 to avoid additional interest consequences.

With the deadline falling tomorrow, eligible taxpayers should review their advance tax position and make the required payment within the prescribed time.