If you're a freelancer in India and your tax for tax year 2026-27, after TDS, will be ₹10,000 or more, you must pay advance tax during the year. The third instalment is due on 15 December 2026, by which time you should have paid 75% of your estimated tax. The earlier dates were 15 June (15%) and 15 September (45%), and the balance is due by 15 March 2027 (100%). Freelancers who use the presumptive scheme can instead pay the whole amount in one go by 15 March 2027.
Advance tax due dates, tax year 2026-27
| Due date | Cumulative amount paid by then |
|---|---|
| 15 June 2026 | 15% of estimated tax |
| 15 September 2026 | 45% |
| 15 December 2026 | 75% |
| 15 March 2027 | 100% |
The percentages are cumulative: by 15 December you should have paid 75% of the year's tax in total, not an extra 75%. Tax year 2026-27 is the first year under the Income-tax Act, 2025, which renamed the "financial year" the tax year and renumbered many sections, but the advance tax dates and percentages are unchanged.
Who has to pay advance tax?
- Freelancers and consultants whose clients don't deduct enough TDS to cover their tax.
- Salaried people with other income, such as rent, capital gains, FD interest or side projects, where the extra tax is ₹10,000 or more.
- Not required: resident senior citizens (60+) with no business or professional income.
How to work out your instalment
- Estimate your income for the whole year (April 2026 to March 2027), after business expenses.
- Work out the tax under your chosen regime, including 4% cess.
- Subtract the TDS your clients have deducted or will deduct. Check it in your AIS or Form 26AS.
- Apply the percentage for the due date, and subtract what you've already paid this year.
Worked example: a ₹15 lakh freelancer
A freelance developer expects ₹15 lakh of profit this year (after expenses), is in the new regime, and expects clients to deduct ₹30,000 of TDS.
| Step | Amount |
|---|---|
| Tax on ₹15 lakh (new regime slabs) | ₹1,05,000 |
| Plus 4% cess | ₹1,09,200 |
| Less TDS by clients | − ₹30,000 |
| Advance tax for the year | ₹79,200 |
| By | Cumulative | Pay at this date (if on schedule) |
|---|---|---|
| 15 June | ₹11,880 | ₹11,880 |
| 15 September | ₹35,640 | ₹23,760 |
| 15 December | ₹59,400 | ₹23,760 |
| 15 March | ₹79,200 | ₹19,800 |
New regime slabs: nil up to ₹4 lakh, 5% to ₹8 lakh, 10% to ₹12 lakh, 15% to ₹16 lakh. The ₹12 lakh rebate doesn't apply above ₹12 lakh of income. The salaried ₹75,000 standard deduction doesn't apply to freelance income.
Missed June and September? Pay ₹59,400 by 15 December. Interest of 1% a month applies to the shortfall on the earlier instalments, so paying now limits it. If you paid at least 12% by 15 June and 36% by 15 September, no interest applies to those instalments.
The presumptive option: one payment by 15 March
Many freelance professionals use the presumptive scheme for professionals (the former section 44ADA): 50% of gross receipts is treated as income, with no need to keep detailed books, provided receipts are within the limit (₹75 lakh where no more than 5% is received in cash). Under this scheme you can pay 100% of advance tax in a single instalment by 15 March 2027, with no December deadline. For example, ₹30 lakh of receipts gives ₹15 lakh of deemed income and the same tax as above, all payable by 15 March. Check with your CA whether the scheme suits you.
What happens if you don't pay?
- 1% a month interest on each instalment you pay late or short (the former section 234C).
- 1% a month from April on the balance if you've paid less than 90% of your tax by 31 March (the former section 234B).
Neither is a penalty on top, but on a large tax bill the interest adds up.
How to pay
Pay online through e-Pay Tax on the income tax e-filing portal. Choose advance tax as the payment type and make sure you select the correct tax year (2026-27), then pay by net banking, UPI, card or at the bank. Keep the challan receipt; the payment appears in your AIS and Form 26AS.
Tools that make this easier
The biggest reason freelancers miss advance tax is not knowing their year's profit until March. The GST Invoice & Business Finance Toolkit keeps your invoice register, a running profit and loss and a 12-month cash-flow forecast, so your estimated profit is always up to date. The Loan, Tax & Investment Decision Suite compares the old and new regimes on your numbers. Get both in the Indian Freelancer Money Stack for ₹1,999 instead of ₹2,498.
Invoicing clients with GST too? See our GST invoice format guide for freelancers, and our old vs new regime comparison.
Frequently asked questions
When is the third advance tax instalment due for 2026-27?
15 December 2026. By then you should have paid 75% of your estimated tax for the year, in total.
Do freelancers have to pay advance tax?
Yes, if their tax for the year, after TDS, is ₹10,000 or more. Freelancers using the presumptive scheme can pay it all in one instalment by 15 March 2027.
What if I missed the June and September instalments?
Pay the full 75% by 15 December. Interest of 1% a month applies to the earlier shortfall, so paying now limits it.
Do salaried employees need to pay advance tax?
Only if they have other income, such as rent, capital gains or freelance work, and the tax on it, after TDS, is ₹10,000 or more.
Did advance tax dates change under the Income-tax Act, 2025?
No. The dates and percentages are unchanged; the new Act renamed the financial year the tax year and renumbered the sections.
This article is general information with an illustrative example, not tax advice. It does not cover surcharge, capital gains or special rates. Confirm your own situation with a qualified chartered accountant.