You open the Income Tax portal to pay advance tax, but notice that Challan 280 was no longer there. If that left you confused, you are not alone. Many crypto traders are facing the same issue. But there is nothing to worry about.
From April 2026, the new Income Tax Act, 2025 changed the payment process. Advance tax is now paid through ITNS 280N using the e-Pay Tax service. Unlike before, Advance Tax has its own separate payment category and is no longer grouped with Self-Assessment Tax.
However, even if the process has changed slightly, paying late can still be expensive. If you do not pay enough advance tax or miss the due dates, Sections 234B and 234C can charge 1% interest every month on the unpaid amount. For crypto traders with large profits, these extra charges can add up quickly, especially because crypto losses cannot be adjusted against gains.
Therefore, understanding the revised payment process is essential to avoid incurring unnecessary interest penalties and compliance issues. This guide explains everything step by step. You will learn how you can generate the correct CRN, choose the Advance Tax option under ITNS 280N, and complete the payment on the Income Tax portal for Financial Year 2026-27 and later.
Key Takeaways
- From April 2026, advance tax on crypto gains can be paid via ITNS 280N under the Income Tax Act, 2025, not the legacy Challan 280.
- Advance Tax is now a distinct minor head, separate from Self-Assessment Tax, on the e-Pay Tax page.
- Crypto gains are taxed at a flat 30% plus 4% cess under Section 115BBH, with no loss set-off, so the entire gain feeds directly into your advance tax estimate.
- Missing an advance tax instalment attracts 1% monthly interest under Section 234B and Section 234C.
- Advance tax can be paid through both pre-login and post-login routes on the income tax e-filing portal.
Advance tax applies to a wide range of taxpayers, crypto business owners, traders, investors, and salaried individuals with additional income sources. Crypto adds another layer to that obligation. Under Section 208 of the Income Tax Act 1961, advance tax becomes payable once total tax liability for the year exceeds INR 10,000.
For crypto traders, that threshold arrives faster than most expect. Since crypto gains are taxed at a flat 30% under Section 115BBH, even a modest profit pushes total liability past the limit. However, before calculating the amount due, account for any TDS already deducted on your transactions, only the remaining net liability determines whether the INR 10,000 threshold is actually crossed.
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What are the Quarterly Advance Tax Due Dates?
Advance tax must be paid in four instalments across the financial year. Each instalment carries a cumulative percentage of the total estimated tax liability, as shown below:
Due Date | Cumulative Tax Payable |
15th June 2026 | 15% of estimated annual tax liability |
15th September 2026 | 45% of estimated annual tax liability |
15th December 2026 | 75% of estimated annual tax liability |
15th March 2027 | 100% of estimated annual tax liability |
These percentages are cumulative, not additive. By 15th September, for instance, total advance tax paid so far should equal 45% of the year’s estimated liability, not merely the second instalment’s individual share.
What Changed in Advance Tax Filing After the Income Tax Act, 2025?
The procedural shift outlined earlier deserves a closer look before generating any challan. Selecting the wrong Act on the portal leads directly to the wrong form and the wrong tile.
Challan 280 Under the Income Tax Act, 1961
Up to Tax Year 2025-26, advance tax, self-assessment tax, and regular assessment tax were all filed through the same Challan 280 form. The taxpayer selected the relevant “Tax Type” manually at the time of payment.
ITNS 280N Under the Income Tax Act, 2025
From April 2026, the structure changed considerably. The new e-Pay Tax interface separates “Advance Tax” into its own minor head, filed under ITNS 280N. Moreover, payments are now organised by “Tax Year” rather than “Assessment Year.”
Which One Applies to You Right Now
Traders making advance tax payments for Tax Year 2026-27 onwards must select “Income Tax Act 2025” and use ITNS 280N. However, for payments relating to Assessment Year 2026-27 or earlier years, you should still go for the Income Tax Act 1961 option.
How to Pay Advance Tax on Cryptocurrencies Capital Gains or Income?
With the correct Act identified, the actual payment process follows a fixed sequence on the income tax e-filing portal. The portal gives you two ways to make the payment. If you have an account, you can log in with your registered credentials and continue through the post-login route. However, if you do not want to log in, you can go the pre-login route and verify yourself with your PAN details.
The steps below cover how to file advance tax through both methods for FY 2026-2027.
Paying Advance Tax Through the Post-Login Method
Here is how you can pay your crypto advance tax using your e-pay account:
Step 1: Log In to Your Account
Log in to the income tax portal using your PAN as the user ID, along with your registered password. Enter the captcha code displayed, then click “Continue” to access the dashboard.
Step 2: Navigate to e-Pay Tax
From the dashboard, select “e-File,” then “e-Pay Tax.” The portal then prompts selection of the applicable Act before the payment flow continues further.
Step 3: Select "Income Tax Act 2025"
On the Act selection screen, choose “Income Tax Act 2025” and press the “Continue” button to access Tax Year 2026-27 onwards. This single choice determines which challan form and tile set the portal displays next.
Step 4: Click New Payment
On the “e-Pay Tax” page, click “New Payment,” located at the top right corner of your screen. This will lead you to the list of tax payment tiles available for selection.
Step 5: Choose the Income Tax Tile
On the “New Payment” page, click “Proceed” on the “Income Tax” tile (or Corporation Tax for company logins). This particular tile contains the “Advance Tax” minor head.
Step 5: Select Advance Tax as the Minor Head
Under “Add Tax Applicable Details,” select the relevant “Tax Year:” 2026-27. Then, choose “Advance Tax (100)” as the minor head. Finally, click “Continue.”
Step 6: Enter Your Tax Breakup Details
On the “Add Tax Breakup Details” page, enter the estimated amount for the current instalment. The portal will request this broken into the following components:
- Tax: Enter the principal advance tax amount calculated for this quarterly instalment, based on estimated annual liability.
- Surcharge: Enter applicable surcharge, if your total estimated income crosses the surcharge threshold for the applicable slab.
- Cess: Enter health and education cess, calculated at 4% on the total tax and surcharge amount.
- Interest: Enter interest payable under Section 234B or Section 234C, applicable only when correcting a missed or delayed instalment.
- Penalty: Enter any penalty amount, applicable only in specific assessment or demand scenarios, not standard advance tax payments.
- Others: This field covers miscellaneous amounts outside standard tax components. For a routine advance tax payment on crypto gains, this field will remain zero.
Step 7: Choose Your Payment Mode and Proceed
Select a payment mode, such as net banking, debit card, or UPI, through an authorised bank. Other banks require NEFT or RTGS through the RBI facility.
Step 8: Preview, Pay, and Download the Receipt
Review every detail on the “Preview and Make Payment” page. Use the “Edit” option if any correction is needed, then click “Pay Now.” Once done, download your “Challan Receipt” for ITR filing later.
Paying Advance Tax Through the Pre-Login Method
An account on the income tax portal is not always necessary. The pre-login route allows payment through PAN verification alone, using the same e-Pay Tax service described above.
Step 1: Visit the e-Pay Tax Page
Go to the income tax e-filing portal and click “e-Pay Tax.” visible without logging in. This opens the page where you will have to enter your PAN details directly.
Step 2: Select the Applicable Act
On the “e-Pay Tax” page, select the applicable tax Act. For advance tax payment for Financial Year 2026-27, select “Income Tax Act 2025,” applicable for Tax Year 2026-27 onwards. Then, click “Continue.”
Step 3: Fill in the Required Details
Enter your PAN/TAN(if business), confirm it, and add your mobile number to receive an OTP for this transaction. Click “Continue.”
Step 4: Verify Through OTP
Enter the six-digit code on the next page and click “Continue;” it is only valid for 15 minutes. Once the OTP is verified, click “Continue” to move to the next page.
Step 5: Confirm Your PAN Details
After successful verification, a success message displays your PAN along with a masked name. Click Continue to proceed to the payment category selection.
Step 6: Choose the Income Tax Tile
Click “Proceed” on the “Income Tax” tile, and follow Steps 5 through 8 of the Post-Login method mentioned above.
How to Calculate Advance Tax on Crypto Gains Before You Pay?
Generating the challan correctly matters little if the underlying figure is wrong. Therefore, the calculation itself deserves equal attention before any payment is made.
The Calculation Formula Under Section 115BBH
The formula itself is simple. Estimated tax equals total crypto gains for the period, multiplied by 30%, plus 4% cess. No deductions beyond cost of acquisition apply, and losses from other transactions cannot reduce this figure.
Step-by-Step: Working Out Your Quarterly Advance Tax Figure
The calculation becomes manageable once broken into clear steps. Follow these six steps before each due date arrives:
- Step 1: Total all crypto disposal gains from 1st April up to the current due date.
- Step 2: Apply 30% tax plus 4% cess to arrive at your total estimated liability from crypto gains alone.
Crypto Tax Liability = (Total Crypto Gains × 30%) + (Tax on Crypto Gains × 4%)
- Step 3: Add this figure to tax liability from other income sources, if any, to reach total estimated tax for the year.
Total Estimated Tax = Crypto Tax Liability + Tax Liability from Other Income
- Step 4: Multiply total estimated tax by the cumulative percentage due at this instalment.
Cumulative Tax Payable = Total Estimated Tax × Applicable Percentage (15%, 45%, 75%, or 100%)
- Step 5: Subtract any advance tax already paid during earlier instalments this year.
Amount Payable Now = Cumulative Tax Payable − Advance Tax Already Paid
- Step 6: The resulting figure is the amount to enter while generating ITNS 280N.
Example
Consider a trader named Aman, who made INR 4,00,000 in crypto gains by 14th September. His estimated annual tax on this figure, at 30% plus 4% cess, comes to INR 1,24,800. Against the 45% cumulative requirement, his payable amount by 15th September is INR 56,160, assuming no other income and no prior instalment is paid.
What Happens If You Miss an Advance Tax Instalment on Crypto Gains?
Missing a quarterly deadline does not simply postpone the obligation. Instead, it triggers interest charges that grow the longer the shortfall remains unpaid. Here are the consequences you should be aware of:
Interest Under Section 234B for Shortfall
Under Section 234B, if advance tax paid is less than 90% of assessed tax, 1% monthly interest applies. This interest runs from 1st April until the actual date of payment.
Interest Under Section 234C for Deferred Instalments
Even where the full amount is settled by year-end, Section 234C still applies separately. Missing the cumulative percentage at any quarterly due date triggers 1% monthly interest for that specific instalment alone.
Avoiding this interest depends entirely on knowing cumulative gains before each due date arrives. Manually tracking disposals across exchanges can make that estimate unreliable. KoinX consolidates every transaction into one running figure, so each instalment gets calculated correctly.
How Can KoinX Help With Advance Tax on Crypto?
Estimating advance tax on crypto gains requires an accurate, current figure at every quarterly checkpoint, not just at year-end. KoinX is built specifically for that requirement. It tracks gains continuously across exchanges, so traders always know where their liability stands before each due date.
Real-Time Capital Gains Preview
KoinX shows current capital gains to users who have integrated their exchange/wallet data with it. As transactions are recorded, rather than only at tax-filing time. This preview will help you estimate your advance tax liability accurately before each quarterly due date arrives, reducing the risk of underpayment.
Consolidated Gains Across Multiple Exchanges
Traders active on several exchanges often lose track of cumulative gains across platforms. KoinX consolidates every transaction into a single running total, giving an accurate combined figure for advance tax calculation at any point in the year.
Quarter-Wise Gains Breakdown
Rather than presenting only an annual total, KoinX breaks gains down by quarter. This mapping aligns directly with the four advance tax due dates, making it considerably easier to confirm each instalment before the deadline.
ITR-Ready Schedule VDA Reports
Once the financial year closes, KoinX generates Schedule VDA reports formatted for direct use in the ITR. These reports help reconcile total advance tax already paid against the final assessed liability for the year.
KoinX Connect: Automatic Import from 800+ Exchanges
KoinX Connect imports transaction data automatically from over 800 exchanges and wallets. This removes the need for manual CSV exports, ensuring quarterly estimates always reflect the most current trading activity available.
Estimate your next advance tax instalment accurately. Register on KoinX today and let consolidated, real-time gains data guide every quarterly payment.
Conclusion
Advance tax on crypto gains now follows the ITNS 280N process under the Income Tax Act, 2025, with Advance Tax recognised as its own minor head. Crypto’s flat 30% rate, with no loss set-off available, makes accurate quarterly estimation essential to avoid Section 234B and Section 234C interest charges.
Since that estimation depends on having an accurate, consolidated gains figure before each due date, KoinX is built to generate precisely that number. Sign-up on KoinX today and calculate your next advance tax instalment with confidence.
Frequently Asked Questions
I missed the June installment but plan to pay everything by March. Will I still owe interest?
Yes, interest under Section 234C applies separately to each missed cumulative percentage, regardless of whether the full amount is eventually paid by March. Paying everything at year-end does not erase interest already accrued on the missed June installment. Each due date is assessed independently.
I made most of my crypto gains in the last quarter. Do I still need to pay advance tax earlier in the year?
Yes, if your total estimated tax liability for the year, including the anticipated later gain, exceeds INR 10,000. The cumulative percentage schedule still applies, and underestimating earlier installments based on low early-year gains can still trigger Section 234C interest later.
I am a salaried employee with a small crypto side income. Do I still need to pay advance tax separately?
This depends on whether your combined tax liability, salary plus crypto gains, exceeds INR 10,000 after accounting for TDS already deducted on salary. If crypto gains push your net liability above this threshold, advance tax becomes payable on the additional amount.
Can I use the old Challan 280 if I am paying advance tax for FY 2025-26 dues after April 2026?
This depends on the relevant Assessment Year. Payments relating to Assessment Year 2026-27 or earlier years still use the Income Tax Act 1961 option and Challan 280. ITNS 280N applies specifically to Tax Year 2026-27 onwards.
What minor head should I select if I am unsure whether my payment is advance tax or self-assessment tax?
Advance tax applies during the financial year itself, before it closes. Self-Assessment Tax, by contrast, only becomes available after the relevant Tax Year ends. If you are paying mid-year, select Advance Tax as the minor head.
I overpaid my advance tax based on an estimate. What happens to the excess amount?
The excess amount is adjusted against your final tax liability when you file your ITR. If the total tax paid, including TDS and advance tax, exceeds your assessed liability, the difference is refunded after processing.
