Advance Tax – June 2026 Instalment: What Every Assessee Must Know Under the Income Tax Act 2025
The transition from the Income Tax Act, 1961 to the Income Tax Act, 2025 marks one of the most significant structural overhauls in Indian taxation in recent decades. Effective from 1st April 2026, the new legislation brings with it renumbered provisions, updated terminology, and a revised default tax regime. While the foundational mechanics of advance tax remain largely intact, assessees must navigate a set of new compliance requirements before depositing the first instalment due on 15th June 2026. Getting these details wrong — even on a technicality — can result in incorrect challans, misapplied credits, and avoidable interest liability.
This article walks through the key checks every assessee must perform before making the June 2026 advance tax payment.
Understanding What Has — and Has Not — Changed
The Core Structure Remains Intact
The advance tax framework continues to operate on a four-instalment schedule with identical due dates as under the Income Tax Act, 1961. The percentage thresholds at each instalment also remain unchanged:
| Instalment | Due Date | Cumulative Payment Required |
|---|---|---|
| 1st | 15th June | 15% of estimated annual tax |
| 2nd | 15th September | 45% of estimated annual tax |
| 3rd | 15th December | 75% of estimated annual tax |
| 4th | 15th March | 100% of estimated annual tax |
For Tax Year 2026-27, the first instalment requires every eligible assessee to deposit at least 15% of the estimated total tax liability by 15th June 2026.
What Has Changed: Terminology and Section Numbers
The most operationally impactful changes are terminological and structural in nature:
- The term "Assessment Year" no longer exists under the Income Tax Act, 2025. It has been replaced entirely by "Tax Year"
- The term "Previous Year" has similarly been discontinued
- Multiple provisions have been renumbered, though their substantive content largely mirrors the old Act
- The New Tax Regime is now the default regime under the new Act, with revised slab rates applicable unless the assessee opts otherwise
These changes, while seemingly administrative, have direct consequences on how challan forms are filled, which codes are selected on the tax portal, and how interest provisions are applied.
Critical Checklist Before Paying the June 2026 Instalment
1. Select the Correct Act on the Tax Portal
This is perhaps the most common error anticipated during the first year of transition. When generating a challan on the income tax portal, assessees must ensure they select "Income Tax Act 2025" and not the old "Income Tax Act 1961".
Selecting the wrong Act results in:
- Incorrect section codes being populated
- Invalid or mismatched challans
- Potential mismatch in the assessee's tax account, requiring rectification