The Income Tax Department states that a person whose estimated tax liability for the year is ?10,000 or more may be liable to pay advance tax. A resident senior citizen without income from business or profession is generally exempt from this requirement.
For most taxpayers liable to advance tax, at least 45% of the total advance-tax liability must be paid by September 15, after adjusting any amount already paid in the June instalment.
For example, if estimated advance tax is ?40,000, the cumulative requirement by September 15 is ?18,000. If ?6,000 was already paid in June, another ?12,000 would generally be required.
This is especially relevant for taxpayers with capital gains, bank interest, rental income or other income not fully covered by TDS.
Action: Re-estimate your FY 2026-27 tax liability before September 15.
