How to Make Your Advance Tax Second Installment Online Payment Before the September 15 Deadline

Published on: 15th Sep 2026

Today is September 15, 2026, which marks a crucial date for taxpayers in India. It is the absolute deadline to pay the second installment of your advance tax for the Financial Year 2026-27. If your estimated tax liability for the year exceeds Rs 10,000, paying advance tax is not just a financial best practice—it is a legal mandate. Fortunately, the Income Tax Department has made the process seamless. This guide will walk you through everything you need to know to complete your advance tax second installment online payment quickly, securely, and without any hassle. Scroll down to read more

Who Needs to Pay the Second Installment of Advance Tax?

Advance tax applies to all taxpayers—salaried individuals, freelancers, professionals, and businesses—whose total tax liability after Tax Deducted at Source (TDS) exceeds Rs 10,000 in a financial year. By September 15, you are required to have paid cumulative total of 45% of your estimated tax liability.

Key criteria to keep in mind:
* Salaried Employees: Generally, your employer deducts TDS. However, if you have additional income from capital gains, interest, or rental properties that hasn't been declared to your employer, you may need to pay advance tax.
* Freelancers and Businesses: Self-employed individuals must estimate their annual income and pay advance tax in quarterly installments.
* Senior Citizens Exemptions: Senior citizens (aged 60 years or above) who do not have any income from business or profession are exempt from paying advance tax.

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

Completing your payment online is straightforward and takes less than ten minutes. Follow these simple steps to pay via the official Income Tax e-filing portal:

1. Visit the Portal: Go to the official Income Tax e-filing website (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'.
3. Enter Details: Input your PAN (Permanent Account Number) and re-enter it for confirmation. Provide your mobile number to receive a secure One-Time Password (OTP).
4. OTP Verification: Enter the OTP received on your mobile and click 'Continue'.
5. Select the Correct Assessment Year (AY): For the Financial Year 2026-27, select Assessment Year 2027-28 from the dropdown menu. This is a critical step; choosing the wrong AY can lead to reconciliation issues.
6. Select Tax Type: Under the 'Income Tax' tile, click on 'Proceed'. Choose (100) Advance Tax as the Type of Payment (Minor Head).
7. Enter Tax Breakup: Fill in the tax amounts under the respective heads (Tax, Surcharge, Cess, Interest, etc.) based on your calculations.
8. Choose Payment Method: Select your preferred payment gateway. You can pay via Net Banking, Debit Card, UPI, RTGS/NEFT, or Payment Gateway (Credit Card).
9. Download Receipt: Once the transaction is successful, download the Challan Receipt (Challan No./ITNS 280) containing the BSR code and Challan Tender Date for your future tax filing records.

What Happens If You Miss the September 15 Deadline?

Delaying your advance tax payment can be costly. If you fail to pay at least 45% of your total tax liability by September 15, you will be liable to pay penal interest under Section 234C of the Income Tax Act.

• Interest Rate: Simple interest of 1% per month (or part of a month) is charged on the short-paid amount for a period of three months.
• Cumulative Impact: Missing multiple installments can lead to additional interest under Section 234B once the financial year ends, significantly increasing your overall tax outflow.
• Avoid Last-Minute Glitches: Online payment gateways and the e-filing portal can experience heavy traffic on deadline day. It is highly recommended to complete your transaction as early in the day as possible to avoid technical failures.

Completing your advance tax second installment online payment on time is a vital step in maintaining healthy financial compliance and avoiding unnecessary interest penalties. With the digital e-filing portal, the entire process is transparent, secure, and highly efficient. Take a few minutes out of your schedule today, September 15, 2026, to calculate your liability and make your payment. If you are unsure about your exact tax calculations, consulting a certified chartered accountant or tax professional is always a wise decision.