India Tax Due DatesInterest on a shortfall of advance tax
If you pay less advance tax than the schedule requires, section 425 of the Income-tax Act, 2025 charges interest on the shortfall at each instalment date (read on 13 November 2026). The comparison is with the tax due on your returned income, the tax on the total income declared in your return, less tax deducted or collected at source and certain reliefs.
| Instalment date | Tax due by then | Interest on the shortfall |
|---|---|---|
| 15 June | 15% | 3% |
| 15 September | 45% | 3% |
| 15 December | 75% | 3% |
| 15 March | 100% | 1% |
Example
Tax due on the returned income of ₹1,00,000, with cumulative payments of ₹10,000 by 15 June, ₹30,000 by 15 September, ₹60,000 by 15 December and ₹90,000 by 15 March: shortfalls of ₹5,000 (June, but 12% was not reached so interest applies), ₹15,000 (September), ₹15,000 (December) and ₹10,000 (March), giving interest of ₹1,150.
The safe limits, section 425(2)
No interest is charged for the 15 June date if you paid 12% or more of the tax due by then, and none for the 15 September date if you paid 36% or more by then. A presumptive taxpayer who pays everything on 15 March is charged simple interest at 1% on any shortfall at that date (section 425(3)).
Common questions
When is there no interest for a short payment?
Section 425(2): if you paid 12% or more of the tax due on the returned income by 15 June, no interest is charged for that date, and if you paid 36% or more by 15 September, none for that date.
What rate is charged?
Section 425(1): 3% on the shortfall for the 15 June, 15 September and 15 December instalments and 1% on the shortfall for 15 March, where the tax due on the returned income is 15%, 45%, 75% and 100% of the tax due on the return.
Source
- The Income-tax Act, 2025, as published in the Gazette of India Extraordinary: section 263 (return of income and its due dates), section 404 and 408 (advance tax and its instalments) and section 425 (interest on shortfall of advance tax). The enacted text was read on 13 November 2026.
Dates and rules from the Income-tax Act, 2025 as read on 13 November 2026. The Government can extend or change dates by notification, and a due date on a holiday is not moved on this site. This site is independent, not connected with the Income Tax Department, and gives information, not tax advice.