Income below ₹12 lakh: Should I pay advance tax in new regime?

For fiscal year 2026, I am expected to have bank interest income of about ₹3 lakh. I also have shortterm capital gains from listed shares at ₹3 lakh. Am I required to pay any advance tax under the new tax regime as my net income is below the ₹12 lakh limit on which no tax is to be paid FY26 onwards?

- Mahesh Nayak

-Name withheld on request

If the total tax payable by you (net of tax deducted at source, or TDS) during the year exceeds ₹10,000, you are required to pay advance tax, irrespective of the tax regime. In your case, no tax would be payable on the bank interest, as the income is below the limit of ₹4 lakh under the new tax regime, which is now the default tax regime.

In the case of short-term capital gains on listed shares, you need to pay tax on gains of ₹2 lakh (instead of ₹3 lakh) on account of the unutilized slab of ₹1 lakh (the difference between the limit of ₹4 lakh and the interest income of ₹3 lakh). The tax payable on such gains would be at 20%, which would amount to ₹40,000 (plus education cess of 4%).