Section 408 Income Tax Act 2025: What Are the Advance Tax Instalment Due Dates?
Section 408 of the Income-tax Act, 2025 specifies when advance tax must be paid, the cumulative amount due at each instalment, and the special single-instalment rule for specified presumptive-income taxpayers.
What does Section 408 provide?
Section 408(1) requires an assessee liable to pay advance tax, except an assessee covered by Section 408(2), to pay advance tax on current income calculated under Section 405 in four instalments during the financial year. The specified percentages are cumulative minimums; amounts already paid are deducted when calculating each subsequent instalment.
Section 408 addresses the timing of advance tax payments. Liability and computation are dealt with separately under Sections 403 to 405.
Advance tax instalment dates and percentages
| Due date | Minimum cumulative advance tax | Amount due at that stage |
|---|---|---|
| On or before 15 June | 15% | 15% of estimated advance tax |
| On or before 15 September | 45% | 45% less earlier instalments paid |
| On or before 15 December | 75% | 75% less earlier instalments paid |
| On or before 15 March | 100% | Full amount less earlier instalments paid |
These are the statutory minimum cumulative percentages under Section 408(1), not separate additional percentages payable each time.
Who can pay advance tax in one instalment?
Under Section 408(2), an assessee declaring profits and gains under Section 58(2), Table serial number 1 or 3, must pay the whole advance tax liability calculated under Section 405 on or before 15 March. This is a specific exception to the normal four-instalment schedule.
Not every person using a presumptive method automatically qualifies for this exception. Check the precise entries referred to in Section 58(2).
What if advance tax is paid after 15 March but by 31 March?
Section 408(3) provides that any amount paid as advance tax on or before 31 March is treated as advance tax paid during the financial year ending on that date. However, this deeming rule does not change the 15 March instalment due date or automatically remove interest consequences for delayed or insufficient instalments.
Relevant statutory expressions
Example: How much advance tax is payable?
Assume the total advance tax computed under Section 405 is Rs. 1,00,000, with no change in the estimate and no earlier overpayment.
| Due date | Cumulative amount required | Instalment amount |
|---|---|---|
| 15 June | Rs. 15,000 | Rs. 15,000 |
| 15 September | Rs. 45,000 | Rs. 30,000 |
| 15 December | Rs. 75,000 | Rs. 30,000 |
| 15 March | Rs. 1,00,000 | Rs. 25,000 |
For an eligible assessee under Section 408(2), the entire Rs. 1,00,000 would instead be payable by 15 March.
Frequently asked questions
Is advance tax due in four instalments?
Yes, for taxpayers subject to Section 408(1): 15 June, 15 September, 15 December and 15 March. The specific category in Section 408(2) follows a single 15 March deadline.
Does 45% become payable again in September?
No. By 15 September, total payments should reach at least 45% of the computed advance tax. Payments already made are subtracted.
Is a payment on 31 March treated as advance tax?
Yes. Section 408(3) treats advance tax paid by 31 March as paid during that financial year, although interest for missed instalments may still apply.
Which older provision corresponds to Section 408?
The broadly corresponding instalment provision was Section 211 of the Income-tax Act, 1961. Apply the statute governing the relevant tax year.
Official statutory references
Last reviewed: 12 November 2026. This article is for general legal information; the statutory text and relevant notifications govern individual cases.