Advance Tax for NRIs FY 2026–27: Due Dates & Payment

Advance tax is income tax paid in instalments during the financial year rather than entirely at the end of the year. For Non-Resident Indians (NRIs), it generally applies when the estimated advance-tax liability in India is ₹10,000 or more, after accounting for eligible tax credits.

For FY 2026–27, advance tax is governed by the Income-tax Act, 2025. NRIs earning taxable income in India should estimate their annual tax liability, account for tax deducted at source (TDS) and other eligible credits, and pay the required instalments by the prescribed dates.

This guide covers advance-tax eligibility, due dates, calculation, online payment, interest on shortfalls and refunds.

Who Should Pay Advance Tax?

Under Section 404 of the Income-tax Act, 2025, advance tax is generally payable when the amount of tax payable under the applicable provisions is ₹10,000 or more for the tax year.

An NRI may need to pay advance tax on income chargeable to tax in India, including:

• Rental income: Income from property situated in India, after applicable deductions and adjustments.

• Capital gains: Taxable gains from selling Indian property, shares or other assets.

• Interest income: Interest from Indian bank deposits or other investments, to the extent taxable in India.

• Business or professional income: Income taxable in India under the applicable rules.

• Other taxable income: Other income chargeable to tax in India.

The calculation depends on the nature of the income, applicable tax rates, eligible deductions, exemptions, tax credits and any available relief under a relevant tax treaty.

An NRI should not automatically include all worldwide income in the Indian advance-tax calculation. The starting point is income chargeable to tax in India under the applicable provisions.

Official reference: Section 404 — Conditions of liability to pay advance tax.

Who Is Exempt from Advance Tax?

A resident individual aged 60 or above who has no income chargeable under the head “Profits and gains of business or profession” is generally exempt from advance tax.

This exemption does not automatically apply to NRIs. A non-resident senior citizen may still need to pay advance tax if the applicable liability threshold is met.

Advance Tax Due Dates for FY 2026–27

Under Section 408 of the Income-tax Act, 2025, taxpayers following the standard schedule must pay advance tax in four instalments.

The percentages are cumulative, not additional percentages at each date. For example, if the estimated net advance-tax liability is ₹1,00,000, the taxpayer would pay ₹15,000 by June, another ₹30,000 by September, another ₹30,000 by December and the remaining ₹25,000 by March.

The actual instalments depend on estimated tax liability and payments already made.

Presumptive taxation: Eligible taxpayers covered by the specified presumptive-tax provisions under Section 408(2) generally pay their full advance-tax liability in one instalment by 15 March 2027. This rule should not be assumed to apply to every business taxpayer.

As of October 2026, the June and September instalment dates have passed. If you missed an instalment, reassess your tax liability and pay the amount currently due promptly. A later payment may not eliminate interest arising from an earlier shortfall.

Official reference: Section 408 — Instalments of advance tax and due dates.

How to Calculate Advance Tax for NRIs

Section 405 sets out the framework for calculating advance tax. Broadly, estimate the tax payable on your income for the tax year and subtract eligible TDS, TCS and other permitted credits or reliefs.

Follow these steps:

1. Estimate your income chargeable to tax in India for FY 2026–27.

2. Calculate taxable income after applicable deductions and adjustments.

3. Calculate income tax using the rates and provisions applicable to your circumstances.

4. Add applicable surcharge and cess, where relevant.

5. Subtract eligible TDS, TCS and other permitted credits or reliefs.

6. Account for advance-tax instalments already paid.

7. Pay the amount needed to meet the applicable cumulative instalment target.

Example: Advance Tax After TDS

Suppose an NRI estimates the following tax liability for FY 2026–27:

The cumulative targets and additional payments would be:

This example assumes the estimated TDS is eligible for credit and that no other payments or adjustments apply. Actual liability and instalments may differ.

If you receive unexpected capital gains or dividend income: Recalculate your advance-tax liability. Section 425 provides specific relief from instalment interest in certain circumstances when income such as capital gains, dividend income or specified business income could not reasonably have been estimated earlier. The relevant tax must be paid within the prescribed time, and all statutory conditions must be satisfied.

Official reference: Section 405 — Computation of advance tax.

How NRIs Can Pay Advance Tax Online

For FY 2026–27, the Income Tax Department's e-filing portal uses the Income-tax Act, 2025 payment process and tax-year-based challans.

For an individual NRI paying advance tax:

1. Open the Income Tax Department e-filing portal.

2. Navigate to e-File → e-Pay Tax.

3. Start the challan creation process and provide the requested PAN and verification details.

4. Select the Income-tax Act, 2025 for the payment relating to FY 2026–27.

5. Choose the applicable Income Tax (for Non-Companies) payment option for an individual taxpayer.

6. Select Tax Year 2026–27 and Advance Tax (Minor Head 100).

7. Enter the required payment details and choose an available authorised payment method.

8. Review the challan and complete the transaction.

9. Download the payment receipt and retain the challan reference for your records.

The official portal guide identifies ITNS 280N for income-tax payments under the new Act. The older ITNS 280 process applies to relevant payments governed by the Income-tax Act, 1961.

Important: Do not select AY 2026–27 for advance tax relating to income earned in FY 2026–27. Use Tax Year 2026–27 for the new-Act payment. AY 2026–27 remains relevant to applicable tax obligations for the preceding income year.

Official instructions: Create a challan through PAN login.

Interest on Late or Insufficient Advance Tax

Missing an instalment or paying less than the required amount may result in interest. For FY 2026–27, the relevant provisions include Sections 424 and 425 of the Income-tax Act, 2025.

Section 424: Interest for Default in Advance Tax

Section 424 generally imposes simple interest at 1% for every month or part of a month for the prescribed period if the taxpayer fails to pay advance tax or the advance tax paid is less than 90% of the assessed tax.

The interest is calculated on the amount specified by the section and may continue until the relevant determination or assessment stage. It is not simply a one-time 1% charge on the original estimated liability.

Official reference: Section 424 — Interest for defaults in payment of advance tax.

Section 425: Interest for Deferment of Instalments

Section 425 addresses shortfalls against the prescribed advance-tax instalments. For taxpayers following the standard schedule, the statutory rates are generally:

These rates are applied to the relevant instalment shortfall under the statutory formula. They are not monthly rates. Section 425 also contains specific rules and exceptions, including different treatment for eligible presumptive-taxation cases.

Exceptions for Certain Early Instalment Shortfalls

Section 425 provides that interest under its standard instalment rules is not payable in certain cases if advance tax paid by the relevant date reaches these thresholds:

• By 15 June: At least 12% of the tax due on returned income.

• By 15 September: At least 36% of the tax due on returned income.

These are specific statutory exceptions, not replacements for the standard 15% and 45% cumulative instalment targets. Whether an exception applies depends on the taxpayer's circumstances and the exact provisions.

Example of Section 425 Interest

Suppose the tax due on returned income is ₹1,00,000 and the taxpayer has paid no advance tax by 15 June.

• The 15% instalment target is ₹15,000.

• The shortfall at that date is ₹15,000.

• At the specified 3% rate, the Section 425 interest for that instalment shortfall would be ₹450, assuming the standard rule applies and no exception or adjustment changes the calculation.

This is an illustration of the instalment-rate calculation, not a complete interest assessment. Additional instalment shortfalls may generate further interest, and Section 424 may also apply depending on the final assessed tax and total advance tax paid.

Relief for Certain Unexpected Income

Section 425 provides specific relief where an instalment shortfall arises because certain income—such as capital gains, dividend income or specified business income—could not reasonably have been estimated. The taxpayer must meet the statutory conditions, including paying the tax attributable to that income within the prescribed remaining instalment period or by the applicable year-end deadline.

Official references:

• Section 425 — Interest for deferment of advance tax

• Income Tax Department tax payments FAQ

How NRIs Can Claim an Advance-Tax Refund

If eligible tax payments exceed the final tax liability, an NRI may be entitled to a refund. To claim it:

1. File the applicable income-tax return. Report taxable income, deductions, credits and tax payments accurately for the relevant year.

2. Reconcile tax credits and payments. Check the available tax records and ensure advance-tax challans and TDS/TCS credits are correctly reported.

3. Verify the return. Complete verification using a method available on the e-filing portal.

4. Check refund status. Monitor processing through the official portal and ensure your bank account details meet the department's validation requirements.

A refund is subject to processing and verification by the Income Tax Department. Paying excess advance tax does not remove the requirement to complete the applicable return process.

For related guidance, read Savetaxs' Income Tax Return guide.

Advance Tax Checklist for NRIs

Before paying advance tax, confirm that you have:

• Estimated your income chargeable to tax in India for FY 2026–27.

• Calculated tax after applicable deductions, credits and reliefs.

• Accounted for eligible TDS and TCS.

• Checked whether your estimated liability meets the ₹10,000 threshold.

• Identified the correct instalment schedule for your circumstances.

• Selected the correct Act, Tax Year and payment type on the portal.

• Saved the challan receipt and payment reference.

• Reviewed potential interest on missed or insufficient instalments.

Get Help with NRI Tax Compliance

Estimating advance tax can be complicated when you have rental income, capital gains, interest or multiple Indian income sources. Reviewing your estimated tax liability and TDS credits can help you plan payments and identify potential shortfalls before the year ends.

For assistance with advance-tax calculations, Indian tax liability or NRI tax filing, contact Savetaxs.