What is Advance Tax Filing ?

Advance tax filing in India refers to the process of paying your income tax liability in advance rather than at the end of the financial year. This system is designed to help the government receive a steady flow of income throughout the year and to ease the tax burden on taxpayers by breaking it into smaller payments.

Benefits

  • Ensures Compliance : Helps taxpayers adhere to income tax regulations and avoid penalties.
  • Distributes Tax Burden : Spreads the tax liability throughout the year, making financial management easier.
  • Avoids Interest Charges : Timely payment prevents interest charges for underpayment.

PROCESS/ STEPS

01

Calculate Advance Tax

Estimate your total tax liability for the year.

02

Make Payments

After calculating the advance tax, Use the appropriate challan to pay the advance tax in installments as per the due dates.

03

Keep Receipts

Save payment receipts for reference during annual income tax return filing.

Documents Required

  • Income Statements:
    • Salary Slips
    • Rent Receipts
    • Bank Statements (for interest income)
    • Investment Proofs (dividends, capital gains)
    • Business Income Records (profit & loss statement)
  • Previous Year’s Tax Returns:Last year’s income tax return for reference.
  • TDS CertificatesForm 16/16A (issued by employers and others for TDS deductions)
  • Deductions and Exemptions Proofs:
    • Investment Proofs (under sections like 80C, 80D, etc.)
    • Loan Repayment Documents (home loan interest, education loan)
  • Business-related Documents (if applicable):
    • Financial Statements (balance sheet, profit & loss account)
    • Details of Advance Tax Paid Previously
  • Bank Challan/Receipt:Proof of advance tax payments already made.

Our Support?

  • Accuracy : Ensures precise calculation and payment of advance tax to minimize errors.
  • Convenience : Manages the entire process, saving you time and effort.
  • Peace of Mind : Guarantees compliance with tax regulations and avoids penalties.

Our support ensures that your advance tax filings are handled with precision, efficiency, and compliance, allowing you to focus on other priorities while we manage your tax obligations effectively.

Frequently Asked Questions

Any individual, whether salaried or self-employed, or business entity whose estimated tax liability for the financial year exceeds ₹10,000 is required to pay advance tax. This includes income from various sources such as salary, business, profession, rent, capital gains, and interest.

Advance tax is paid in installments according to the following schedule:

  • 15th June : At least 15% of the total estimated tax liability.
  • 15th September : At least 45% of the total estimated tax liability (cumulative).
  • 15th December : At least 75% of the total estimated tax liability (cumulative).
  • 15th March : 100% of the total estimated tax liability. For taxpayers under the presumptive income scheme (sections 44AD and 44ADA), the entire advance tax is payable by 15th March.

  • If advance tax is not paid or is underpaid, interest may be levied under sections 234B and 234C of the Income Tax Act.
  • Section 234B: Interest for default in payment of advance tax.
  • Section 234C: Interest for deferment of advance tax.