ADVANCE TAX COMPLIANCE

Ensure compliant calculation and timely payment of quarterly advance tax to avoid penal interest under Sections 234B & 234C.

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What is Advance Tax Compliance?

Advance Tax is the payment of income tax in installments throughout the financial year instead of a lump sum at year-end. Under Section 208 of the Income Tax Act, 1961, any taxpayer whose estimated tax liability for the year is ₹10,000 or more is required to pay advance tax in four specific quarterly installments (June 15, September 15, December 15, and March 15).

Key Benefits

  • Avoids Interest Penalties: Eliminates penal interest charges of 1% per month under Section 234B (non-payment) and Section 234C (under-payment).
  • Liquidity Management: Prevents cash flow strain at the end of the fiscal year by distributing tax payments in structured quarterly installments.
  • Compliance Health: Maintains a clean, dispute-free tax history with the Income Tax Department, reducing audit and scrutiny risks.
  • Accurate Forecasting: Professional tax estimation ensures you pay only what is required, optimizing business working capital.

Frequently Asked Questions

Any taxpayer whose estimated tax liability exceeds Rs. 10,000 after deducting TDS is required to pay Advance Tax. This applies to individuals, businesses, companies, and professionals with taxable income from any source.
Advance Tax is paid in four instalments: 15% by June 15, 45% by September 15, 75% by December 15, and 100% by March 15 of each financial year. Senior citizens without business income are exempt.
Failure to pay Advance Tax on time attracts interest under Section 234B (for non-payment) and 234C (for deferment of instalments). Our team ensures timely computation and payment to avoid all such interest charges.
Salaried employees are mainly covered through employer TDS. However, if they have additional income from rent, capital gains, freelancing, or interest above Rs. 10,000 in tax, they may also need to pay Advance Tax.
Advance Tax is computed based on estimated total income for the year, after deducting allowable deductions and applying applicable tax rates. We do accurate quarterly computations to avoid both overpayment and underpayment.