For taxpayers who have opted for the presumptive taxation scheme under Section 44AD or Section 44ADA of the Income Tax Act, 1961, the entire amount of advance tax is payable in a single instalment. For the Financial Year 2025-26 (Assessment Year 2026-27), this single instalment is due on or before 15th March 2026. This is a specific exception to the general rule of paying advance tax in four quarterly instalments.

Detailed Explanation

The liability to pay advance tax arises under Section 208 of the Income Tax Act, 1961, if the estimated tax liability of an assessee for the financial year is ₹10,000 or more. While most taxpayers are required to pay this tax in four instalments, a special provision exists for those covered under the presumptive taxation schemes.

Provisions under the Income Tax Act, 1961

The due dates for payment of advance tax are governed by Section 211 of the Act. The proviso to Section 211(1) carves out a specific rule for assessees who declare their income under Section 44AD(1) or Section 44ADA(1).

• General Rule (for most taxpayers): Advance tax is payable in four instalments.
• Specific Rule (for presumptive taxpayers): An eligible assessee who has opted for the presumptive schemes under Section 44AD or Section 44ADA is required to pay the entire amount of advance tax on or before the 15th of March of the financial year.

The table below illustrates the difference in due dates for FY 2025-26 (AY 2026-27):

Consequences of Non-Payment: Failure to pay the advance tax by the due date of 15th March 2026 will attract interest under the following sections:

• Section 234B: Interest for default in payment of advance tax.
• Section 234C: Interest for deferment of advance tax. For a taxpayer under the presumptive scheme, interest under Section 234C is levied if the advance tax paid on or before 15th March is less than the total tax liability on the returned income.

Provisions under the Income Tax Act, 2025

The provisions relating to the payment of advance tax, including the special provision for taxpayers under the presumptive taxation schemes, as contained in the Income Tax Act, 1961, are retained without modification in the Income Tax Act, 2025. Therefore, the due date remains the same.

Proposals in Finance Bill, 2026

As of the current date, no amendments have been proposed in the Finance Bill, 2026, that would alter the due date for the payment of advance tax for assessees opting for the presumptive taxation schemes under Section 44AD or Section 44ADA. The single instalment rule with the due date of 15th March continues to be applicable.