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Direct and Indirect Taxation · Advance Tax

Advance Tax Instalments and Due Dates under Section 408

Updated 10 October 2026 · Fact-checked

Section 408 of the Income-tax Act, 2025 sets when advance tax is paid. Most assessees pay in four instalments: by 15 June (15%), 15 September (45%), 15 December (75%) and 15 March (100%), all cumulative. An assessee who declares presumptive profits under the specified rows of section 58(2) pays the whole amount by 15 March.

Understand Instalments and Due Dates of Advance Tax (Section 408)

Advance tax means you pay tax during the financial year, as you earn the income, instead of paying it all after the year ends. Section 408 does not say who must pay or how much. It only fixes the due dates and the amount payable by each date.

The Act gives a table of four instalments. The percentages are cumulative. By 15 June you must have paid at least 15% of the advance tax. By 15 September the total paid must reach at least 45%. By 15 December it must reach at least 75%. By 15 March you pay the whole amount. Each instalment is the cumulative percentage minus what you already paid earlier.

The section does not split assessees into companies and non-companies. The same four-instalment table applies to every assessee liable to pay advance tax, except the one special case in sub-section (2). So if a question asks about companies versus non-companies, the section 408 dates are the same for both.

The special case is an assessee who declares profits and gains under section 58(2), Table Sl. No. 1 or 3. This is the presumptive taxation rule. Such an assessee pays the whole advance tax in one go, on or before 15 March.

Any advance tax paid on or before 31 March is treated as paid in the financial year ending on that day. This sub-section (3) means a payment made on 31 March still counts as advance tax of that year, though it may attract interest for being late against the 15 March due date.

Key rules to remember

Instalment schedule (section 408(1))
15 June: ≥ 15% | 15 September: ≥ 45% | 15 December: ≥ 75% | 15 March: 100%
Percentages are cumulative, applied to the advance tax payable.
Amount of each instalment
Instalment = Cumulative % × Advance tax − Advance tax already paid
For the 15 March instalment the cumulative % is 100%.
Presumptive taxation rule (section 408(2))
Whole advance tax on or before 15 March
Applies to an assessee declaring profits under section 58(2), Table Sl. No. 1 or 3.
Payment by 31 March (section 408(3))
Paid on or before 31 March = advance tax of that financial year
Treated as advance tax for all purposes of the Act.

How to solve Instalments and Due Dates of Advance Tax (Section 408) questions

Use this method for any question on instalments and due dates.

  1. 1Find the advance tax payable for the year, computed on current income as per section 405. Use the figure given in the question.
  2. 2Check whether the assessee declares profits under section 58(2), Table Sl. No. 1 or 3. If yes, the whole amount is due on or before 15 March, and you stop here.
  3. 3Otherwise, write the four due dates: 15 June, 15 September, 15 December, 15 March.
  4. 4Apply the cumulative percentages 15%, 45%, 75% and 100% to the advance tax.
  5. 5Subtract earlier payments to get each instalment. Show the subtraction.
  6. 6Check that the instalments add up to the total advance tax.
  7. 7State the conclusion in one line, for example the amount due on each date.

Quickest way: Cumulative table in four lines

When to use it: Use when the question asks for instalment amounts of a regular assessee and the advance tax is a round figure.

  1. Write the advance tax as T.
  2. Instalment 1 = 15% of T. Instalment 2 = 30% of T. Instalment 3 = 30% of T. Instalment 4 = 25% of T.
  3. Check: 15 + 30 + 30 + 25 = 100.
  4. This shortcut works only if every earlier instalment was paid exactly at the minimum. If the assessee paid more or less earlier, recompute using cumulative percentages minus actual payments.

Common mistakes in Instalments and Due Dates of Advance Tax (Section 408)

  • Treating the percentages as separate amounts of 15%, 45%, 75% and 100% each.

    The table column reads like a list of rates.

    Fix: Remember they are cumulative. Total paid by each date must reach that percentage. The fresh payment is the difference.

  • Saying companies and non-companies have different due dates under section 408.

    Students mix this with older rules or with other provisions.

    Fix: Section 408(1) applies one table to all assessees liable to pay advance tax, other than those in sub-section (2). The split is presumptive versus others, not company versus non-company.

  • Giving four instalments to a presumptive taxation assessee.

    Students remember the table but forget sub-section (2).

    Fix: Check section 58(2), Table Sl. No. 1 or 3, first. If it applies, pay the whole amount on or before 15 March.

  • Applying the single-instalment rule to every presumptive scheme.

    Students overgeneralise from the word presumptive.

    Fix: The text refers only to section 58(2), Table Sl. No. 1 or 3. Use the rule only where the question says the assessee declares profits under those rows.

  • Ignoring earlier payments when computing the 15 September, 15 December and 15 March instalments.

    Students apply the percentage to the total and forget to deduct.

    Fix: Always write cumulative requirement minus amount already paid.

  • Confusing the due dates with the interest thresholds of 12% and 36%.

    Both appear in the same chapter.

    Fix: Section 408 gives due dates and 15%, 45%, 75%. The 12% and 36% relief is in section 425(2) on interest. Keep the two apart.

Worked examples

Example 1

Mehta Traders Pvt. Ltd. estimates its advance tax payable for the financial year at ₹8,00,000. It pays ₹1,20,000 on 14 June, ₹2,40,000 on 14 September, ₹2,40,000 on 14 December and the balance on 14 March. Show the cumulative requirement and the instalment due on each date under section 408.

Show the solution
  1. Advance tax payable = ₹8,00,000. Section 408(2) does not apply, so four instalments are due.
  2. By 15 June: 15% × ₹8,00,000 = ₹1,20,000. Paid ₹1,20,000. Requirement met.
  3. By 15 September: 45% × ₹8,00,000 = ₹3,60,000. Less paid earlier ₹1,20,000. Instalment = ₹2,40,000. Paid ₹2,40,000.
  4. By 15 December: 75% × ₹8,00,000 = ₹6,00,000. Less paid earlier ₹3,60,000. Instalment = ₹2,40,000. Paid ₹2,40,000.
  5. By 15 March: whole amount ₹8,00,000. Less paid earlier ₹6,00,000. Instalment = ₹2,00,000.
  6. Check: ₹1,20,000 + ₹2,40,000 + ₹2,40,000 + ₹2,00,000 = ₹8,00,000.

Answer: Instalments: ₹1,20,000 by 15 June, ₹2,40,000 by 15 September, ₹2,40,000 by 15 December and ₹2,00,000 by 15 March. Each payment was made on or before its due date.

Example 2

Ravi Kumar, a trader, declares profits and gains under section 58(2), Table Sl. No. 1. His advance tax for the year is ₹36,000. He wants to know when it must be paid. His friend, a consultant who does not declare under section 58(2), has advance tax of ₹36,000 and has paid nothing by 15 June. What is due from the friend by 15 June?

Show the solution
  1. Ravi declares profits under section 58(2), Table Sl. No. 1. Section 408(2) applies.
  2. He must pay the whole ₹36,000 on or before 15 March. No earlier instalments are required.
  3. The friend is not covered by sub-section (2), so the four-instalment table in section 408(1) applies.
  4. By 15 June the friend must have paid not less than 15% × ₹36,000 = ₹5,400.
  5. He has paid nothing, so ₹5,400 is the minimum due on that date.

Answer: Ravi pays ₹36,000 in a single instalment on or before 15 March. The friend must pay at least ₹5,400 by 15 June.

Exam tips

  • In MCQs, read the assessee description first. Look for section 58(2) presumptive declaration, which signals the 15 March single instalment.
  • Option traps usually swap 15%, 45% and 75% or the months. Remember June 15%, September 45%, December 75%, March 100%.
  • In written answers, show cumulative requirement, less earlier payments, and instalment in three columns. This earns step marks.
  • Write the section numbers 408(1) and 408(2) when stating the rule. Cite 408(3) if the question mentions payment on 31 March.
  • Do not discuss interest unless asked. If the question also asks for interest, move to section 425 and treat it as a separate step.

Practice questions from Advance Tax

Instalments and Due Dates of Advance Tax (Section 408) in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Instalments and Due Dates of Advance Tax (Section 408): frequently asked questions

What are the advance tax due dates and percentages under section 408?

The four dates are 15 June, 15 September, 15 December and 15 March. The cumulative amounts are not less than 15%, 45% and 75% for the first three dates, and the whole amount by 15 March.

Do companies and non-companies have different advance tax due dates?

Under section 408 they do not. The same four-instalment table applies to every assessee liable to pay advance tax, except an assessee covered by sub-section (2). That exception depends on the presumptive declaration, not on whether the assessee is a company.

When does a presumptive taxation assessee pay advance tax?

An assessee who declares profits and gains under section 58(2), Table Sl. No. 1 or 3, pays the whole advance tax on or before 15 March. There are no earlier instalments for such an assessee.

Does advance tax paid on 31 March count for that year?

Yes. Section 408(3) says any advance tax paid on or before 31 March is treated as paid during the financial year ending on that day. It may still attract interest under section 425 if the 15 March due date was missed.