Chapter XIX - Collection and Recovery of Tax
Section 408
Section 408: advance tax instalments and due dates
Section 408 fixes the familiar quarterly advance tax schedule - four instalments by four dates, cumulatively building up to 100% of the year's advance tax by 15 March - along with a single-instalment rule for assessees declaring presumptive income, and a rule treating tax paid by 31 March as advance tax for the year.
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Need advice on Section 408?
This article is for general information. Refer to the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the Taxation and Other Laws (Amendment) Act, 2026 for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) All the assessees who are liable to pay advance tax, other than the assessee referred to in sub-section (2), shall pay the same on the current income calculated in the manner laid down in section 405 in four instalments during each financial year and the due date of each instalment and the amount of such instalment shall be as specified in the Table below:
| Sl. No. | Due date of instalment | Amount payable |
|---|---|---|
| 1 | On or before the 15th June. | Not less than 15% of such advance tax. |
| 2 | On or before the 15th September. | Not less than 45% of such advance tax, as reduced by the amount, if any, paid in the earlier instalment. |
| 3 | On or before the 15th December. | Not less than 75% of such advance tax, as reduced by the amount or amounts, if any, paid in the earlier instalment or instalments. |
| 4 | On or before the 15th March. | The whole amount of such advance tax, as reduced by the amount or amounts, if any, paid in the earlier instalment or instalments. |
(2) An assessee, who declares profits and gains as per the provisions of section 58(2) (Table: Sl. No. 1 or 3), shall pay the whole amount of advance tax on the current income, calculated in the manner laid down in section 405 during each financial year, on or before the 15th March.
(3) Any amount paid by way of advance tax on or before the 31st March, shall be treated as advance tax paid during the financial year ending on that day for all the purposes of this Act.
Introduction
Section 408 sets four cumulative instalment targets for most people liable for advance tax and a single 15 March payment for the specified presumptive-income cases.
The stated percentages are cumulative, with earlier payments subtracted from later instalments. A payment by 31 March is treated as advance tax paid in that financial year, although the scheduled instalment deadlines remain relevant.
Key takeaways
Four cumulative targets
At least 15% by 15 June, 45% by 15 September, 75% by 15 December and the full amount by 15 March for the regular route.
Presumptive case
An assessee using section 58(2), Table serial number 1 or 3, pays the whole advance tax by 15 March.
Later payments reduced by earlier ones
Each later instalment is reduced by the amount already paid under the earlier instalments.
31 March treatment
An advance-tax payment made by 31 March counts for that financial year under subsection (3).
The four instalments (regular assessees)
All assessees liable to pay advance tax, other than those covered by the presumptive-income rule below, must pay it on current income (computed as per Section 405) in four instalments during the financial year:
| Due date | Amount payable |
|---|---|
| On or before 15 June | Not less than 15% of such advance tax |
| On or before 15 September | Not less than 45% of such advance tax, as reduced by the amount paid in the earlier instalment |
| On or before 15 December | Not less than 75% of such advance tax, as reduced by the amount(s) paid in the earlier instalment(s) |
| On or before 15 March | The whole amount of such advance tax, as reduced by the amount(s) paid in the earlier instalment(s) |
Single instalment for presumptive-income assessees
An assessee who declares profits and gains under Section 58(2) [Table Sl. No. 1 or 3] (presumptive taxation) must pay the whole amount of advance tax on current income, computed as per Section 405, in a single instalment on or before 15 March of the financial year.
Payment by 31 March counts as advance tax
Any amount paid by way of advance tax on or before 31 March is treated as advance tax paid during the financial year ending on that day, for all purposes of the Act.
Step-by-step flow for applying Section 408
- 1
Do you declare profits under Section 58(2) Table Sl. No. 1 or 3?
- Yes: Pay the whole advance tax on or before 15 March (Section 408(2)).
- No: Pay in four instalments.
- 2
By 15 June: pay at least 15% of advance tax
- 3
By 15 September: cumulative 45%, less earlier payments
- 4
By 15 December: cumulative 75%, less earlier payments
- 5
By 15 March: the balance
Any amount paid by 31 March is still treated as advance tax for that financial year (Section 408(3)).
Practical checklist
Do
- Check whether the regular or section 58(2) presumptive schedule applies.
- Calculate the cumulative target and deduct earlier instalments to find each remaining amount.
- Keep dated proof of every payment, including any payment made after 15 March but by 31 March.
Avoid
- Do not treat the 31 March classification rule as changing the 15 March scheduled instalment deadline.
Illustrative example
Worked example: four instalments for a company
Hypothetical facts (illustration only, not a real taxpayer): A company estimates advance tax of ₹10 lakh for the financial year.
15 June
At least ₹1.5 lakh (15%).
15 September
Cumulative ₹4.5 lakh (45%), i.e. a further ₹3 lakh.
15 December and 15 March
Cumulative ₹7.5 lakh (75%) by 15 December, then the remaining ₹2.5 lakh by 15 March.
Outcome
- The full ₹10 lakh is paid by 15 March.
- Shortfalls against these percentages can attract interest under Section 425.
Glossary
- Cumulative instalment percentage
- The share of total advance tax required by a date, reduced by amounts paid in earlier instalments where the table says so.
- Presumptive-income instalment
- The single 15 March instalment for an assessee declaring income under the specified section 58(2) table rows.
Frequently asked questions
What are the four advance tax due dates and cumulative percentages?
15% by 15 June, 45% by 15 September, 75% by 15 December, and 100% by 15 March, each figure being cumulative and reduced by amounts already paid in earlier instalments.
Do presumptive taxation assessees have to pay advance tax in four instalments?
No - an assessee declaring profits under Section 58(2) [Table Sl. No. 1 or 3] pays the entire advance tax in a single instalment on or before 15 March, under Section 408(2).
Does advance tax paid on 31 March still count for that financial year?
Yes - Section 408(3) treats any amount paid by way of advance tax on or before 31 March as advance tax paid during that financial year.
Need help applying this provision to your situation?
Get help calculating your advance tax instalmentsLast updated 10 October 2026