Compliance Alert: June 2026 Tax Deadlines

Compliance Alert

Key Income Tax Deadlines for June 2026
(FY 2025-26 / AY 2026-27)

⚠️ Critical Notice: Missing income tax deadlines leads to expensive penalties, mandatory interest charges, and an increased risk of scrutiny from the Income Tax Department. June 2026 brings two critical statutory deadlines that every taxpayer and employer must meet.

📅 The Big Deadlines: June 15, 2026

Both major tax compliances for this month fall on the exact same day. Mark your calendar for Sunday, June 15, 2026.

💰 ADVANCE TAX FIRST INSTALLMENT
Due Date: June 15, 2026

For: Taxpayers with >₹10,000 liability

📋 ISSUANCE OF FORM 16
Due Date: June 15, 2026

For: Employers issuing salary certs

💰 1. First Installment of Advance Tax

If you have significant income outside of your regular monthly salary, you cannot wait until the end of the year to pay your taxes. You must pay them in advance.

Who Must Pay?

  • Any taxpayer whose estimated total tax liability for FY 2025-26 exceeds ₹10,000 after subtracting TDS/TCS.
  • Exemption: Senior citizens (aged 60 or above) who do not earn any income from a business or profession.

How Much to Pay?

You must pay a minimum of 15% of your estimated total tax liability for the entire financial year.

Important: Base your calculations on your projected income for the whole year (including expected capital gains and business revenue), not just what you earned in the first quarter.

The Cost of Delay

  • Section 234B Interest: Shortfalls in total tax attract interest at 1% per month.
  • Section 234C Interest: Missing or underpaying this specific installment attracts 1% interest per month for a fixed period of 3 months.

Step-by-Step Action Plan

  • Log in to the official Income Tax e-Filing portal.
  • Select Challan 280 and choose Tax Code 100 (Advance Tax).
  • Complete the online payment.
  • Download the payment receipt/challan.
  • Check your Annual Information Statement (AIS) and Form 26AS a few days later to confirm the payment reflects correctly.

📋 2. Issuance of Form 16 to Employees

If you run a business and deduct tax from your employees' salaries, June 15 is your deadline to hand over their tax certificates.

What is Required?

Employers must issue the complete Form 16 (both Part A and Part B) for the salary paid during FY 2025-26.

These forms must be downloaded directly from the official TRACES portal after your Q4 TDS returns (Form 24Q) are processed.

Pre-Issuance Checklist for Employers

  • Reconcile your payroll registers with the filed Form 24Q.
  • Verify that every employee's PAN is correct.
  • Double-check investment proofs, deductions, and the chosen tax regime (Old vs. New).

The Cost of Delay

  • A mandatory penalty of ₹100 per day under Section 272A(2) for every day the form is delayed.
  • Additional late filing fees under Section 234E if your underlying TDS returns were filed late.

Step-by-Step Action Plan

  • Download Part A and Part B from the TRACES portal.
  • Digitally sign the documents.
  • Distribute them to your employees.
  • Keep an internal issuance log.
  • Advise your employees to match the Form 16 figures with their AIS before they file their personal income tax returns.

⚡ Quick Action Checklist for June

To ensure a smooth compliance month, execute these tasks immediately:

Reconcile Payroll

Ensure your payroll data matches your Q4 Form 24Q filings.

Project Income

Estimate your 2025-26 capital gains and business profits to calculate your advance tax.

Regime Comparison

Run a comparative analysis between the Old and New Tax Regimes to optimize your tax liability.

Audit Trails

Securely archive all documents regarding STT/CTT collections, challans, and signed certificates for future tax assessments.