Advance Tax Second Installment Online Payment: A Step-by-Step Guide for Indian Taxpayers

Published on: 21st Sep 2026

Managing your finances efficiently is the hallmark of a financially disciplined taxpayer. In India, tax compliance is not just an annual year-end ritual; it is a structured, year-round process. If your estimated tax liability for the financial year exceeds a specific threshold, you are required to pay your taxes in quarterly installments. The second installment, which represents a significant portion of your total liability, is a critical milestone. Whether you are a salaried professional with side income, a business owner, or a freelancer, understanding how to make your advance tax second installment online payment seamlessly is essential to avoid interest penalties and stay compliant with the Income Tax Department. Scroll down to read more

Who is Liable to Pay the Second Installment of Advance Tax?

Under Section 208 of the Income Tax Act, 1961, any taxpayer whose estimated net tax liability for the financial year exceeds Rs. 10,000 after deducting Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) is required to pay advance tax.

Key details regarding the second installment include:
* The Due Date: The deadline for the second installment is September 15 of the financial year.
* The Amount: Taxpayers must pay cumulative 45% of their total estimated tax liability by this date.
* Exemptions: Senior citizens (individuals aged 60 years or above) who do not earn any income from 'Profits and Gains of Business or Profession' are exempt from paying advance tax.
* Presumptive Taxation: Taxpayers who opt for the presumptive taxation scheme under Section 44AD or 44ADA are exempt from the September deadline; they are required to pay 100% of their advance tax in a single installment by March 15.

Step-by-Step Guide to Advance Tax Second Installment Online Payment

The Income Tax Department has simplified the payment process by integrating it directly into the e-Filing portal. Here is a step-by-step guide to making your payment online:

1. Visit the Official Portal: Go to the official Income Tax e-Filing portal (eportal.incometax.gov.in).
2. Access e-Pay Tax: On the homepage, look for the 'Quick Links' section on the left side and click on 'e-Pay Tax'. Alternatively, log into your account and navigate to 'e-File' > 'e-Pay Tax'.
3. Enter Details: Enter your Permanent Account Number (PAN) and re-enter it for confirmation. Provide a valid mobile number to receive a One-Time Password (OTP).
4. OTP Verification: Enter the OTP received on your mobile phone to verify your identity.
5. Select the Correct Category: After verification, you will see different tax payment tiles. Select 'Income Tax' and click on 'Proceed'.
6. Choose Assessment Year (AY): Select the correct Assessment Year. For the Financial Year (FY) 2026-27, the corresponding Assessment Year is AY 2027-28. Under 'Type of Payment (Minor Head)', select 'Advance Tax (100)'.
7. Fill in the Tax Breakup: Enter the tax amount under the 'Tax' field. If you are paying after the September 15 deadline, you may need to calculate and add interest under Section 234C.
8. Select Payment Method: Choose your preferred payment gateway. Options include Net Banking, Debit Card, Pay at Bank Counter, RTGS/NEFT, or UPI.
9. Download Challan Receipt: Once the payment is successful, download the Challan Receipt (Form CRN). Keep this safe, as it contains the Challan Identification Number (CIN) and BSR code, which are required while filing your Income Tax Return (ITR).

Missed the September 15 Deadline? Here is What You Should Do

If you missed the September 15 deadline for your second installment, it is highly recommended that you make the payment as soon as possible. Delaying your advance tax payment attracts interest under Section 234C of the Income Tax Act.

• Interest Rate: Interest is charged at the rate of 1% per month (simple interest) on the short-paid amount for a period of three months.
• Mitigating the Damage: By making your advance tax second installment online payment immediately, you stop the interest meter from running further into the next quarter. Calculating your tax liability using an online advance tax calculator can help you determine the exact amount you need to pay to minimize additional interest charges.

Completing your advance tax second installment online payment is a quick, secure, and straightforward process that protects you from unnecessary interest penalties under Sections 234B and 234C. By keeping track of your income, estimating your tax liability accurately, and utilizing the e-filing portal, you can easily manage your tax obligations. Stay proactive with your financial planning, make your payments on time, and enjoy peace of mind throughout the financial year.