Direct Tax
Advance Tax Planning & Payment
Computation of a company's estimated tax, a four-instalment payment calendar (15 June / 15 September / 15 December / 15 March), and Challan 280 deposits on the income-tax portal — with interest under s.424 and s.425, Income-tax Act 2025 (earlier s.234B and s.234C, Income-tax Act 1961) modelled upfront so no year-end surprise is left to the ITR.
We compute your estimated tax from AIS, 26AS and the previous year's return, build the instalment calendar, and file each Challan 280 deposit on the income-tax portal. Interest under s.424 and s.425, Income-tax Act 2025 (earlier s.234B and s.234C, Income-tax Act 1961) is modelled upfront so there are no year-end surprises.
- • Advance Tax scope review and action plan
- • Document checklist and evidence review
- • Drafting, computation, or filing support
- • Submission support and acknowledgement tracking
- • Follow-up on queries, corrections, or notices
- • Closure notes and next-step reminders
- • PAN, Aadhaar, or entity tax data
- • Form 16, AIS, 26AS, or return history
- • Bank statements and ledgers
- • Notice, contract, or transaction records, if any
See the fee table below for the statutory filing charge and common delay logic.
- • s.403, Income-tax Act 2025 (earlier s.207, Income-tax Act 1961)
- • s.404, Income-tax Act 2025 (earlier s.208, Income-tax Act 1961)
- • s.405, Income-tax Act 2025 (earlier s.209, Income-tax Act 1961)
- • s.408, Income-tax Act 2025 (earlier s.211, Income-tax Act 1961)
- • s.424, Income-tax Act 2025 (earlier s.234B, Income-tax Act 1961)
- • s.425, Income-tax Act 2025 (earlier s.234C, Income-tax Act 1961)
Process
How the service works
The workflow is built to be predictable: document collection, legal review, filing, and post-filing follow-through.
Compute the estimated liability
We compute the current-year estimated tax from AIS, 26AS, Form 16/16A and the previous year's return, net of the TDS/TCS credit available under s.405, Income-tax Act 2025 (earlier s.209, Income-tax Act 1961).
Build the instalment calendar
We map the liability to the four instalments — 15% by 15 June, 45% by 15 September, 75% by 15 December, 100% by 15 March under s.408(1), Income-tax Act 2025 (earlier s.211 read with the First Schedule, Income-tax Act 1961).
Review the numbers with you
You confirm the estimate and flag changes in turnover, margins, or TDS credits before we lock the payment amounts for the quarter.
Deposit via Challan 280 on the portal
We file each instalment as Challan 280 through e-payment on the income-tax e-filing portal, with the correct assessment year and tax head (0020 — corporation tax).
Verify and reconcile before the ITR
We verify each challan appears in 26AS and reconcile total instalments paid against the final liability so the ITR-6 filed under s.263(1), Income-tax Act 2025 (earlier s.139(1), Income-tax Act 1961) claims the correct credit.
AEO summary
Advance tax is income tax a company pays in four instalments during the year whenever its estimated tax liability after TDS/TCS credit is ₹10,000 or more under s.404, Income-tax Act 2025 (earlier s.208, Income-tax Act 1961). Companies must pay 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March under s.408(1), Income-tax Act 2025 (earlier s.211 read with the First Schedule, Income-tax Act 1961). Each deposit is made as Challan 280 on the income-tax e-filing portal.
How the instalment schedule works
Advance tax spreads a company's tax bill across the year instead of leaving the full liability to the return. The four instalments under s.408(1), Income-tax Act 2025 (earlier s.211 read with the First Schedule, Income-tax Act 1961) are fixed by date, and the cumulative percentages are the same for every company.
A company that paid nothing during the year and settles everything at filing pays interest on every missed instalment — which is why the calendar matters even when the final tax is fully paid.
- • 15% by 15 June — s.408(1), Income-tax Act 2025 (earlier s.211 read with the First Schedule, Income-tax Act 1961)
- • 45% cumulative by 15 September — s.408(1), Income-tax Act 2025 (earlier s.211 read with the First Schedule, Income-tax Act 1961)
- • 75% cumulative by 15 December — s.408(1), Income-tax Act 2025 (earlier s.211 read with the First Schedule, Income-tax Act 1961)
- • 100% by 15 March — s.408(1), Income-tax Act 2025 (earlier s.211 read with the First Schedule, Income-tax Act 1961)
- • Exempt only if estimated tax after TDS/TCS is under ₹10,000 — s.404, Income-tax Act 2025 (earlier s.208, Income-tax Act 1961)
What missing an instalment costs
Advance tax defaults are priced by interest, not by a fixed penalty, and the two sections charge different things. s.424, Income-tax Act 2025 (earlier s.234B, Income-tax Act 1961) targets the year-end shortfall; s.425 (earlier s.234C) targets each instalment that was deferred or underpaid.
Because the interest compounds over the remaining months of the year, a missed June instalment is more expensive than a missed March instalment for the same rupee amount.
- • Year-end shortfall — s.424, Income-tax Act 2025 (earlier s.234B, Income-tax Act 1961): 1% per month simple interest from 1 April following the tax year
- • Deferred instalment — s.425, Income-tax Act 2025 (earlier s.234C, Income-tax Act 1961): 3% of the shortfall for the June, September and December instalments, 1% for March
- • Both charges apply together when instalments are missed and the year-end total is still short
Who must pay advance tax
Every company whose current-year estimated tax is ₹10,000 or more after TDS/TCS credit is in the net — including loss-making companies that expect a profit year, because s.403, Income-tax Act 2025 (earlier s.207, Income-tax Act 1961) looks at the current year's estimate, not the previous year's loss.
Startups under s.140, Income-tax Act 2025 (earlier s.80-IAC, Income-tax Act 1961) and units under the new tax regime still pay advance tax on their taxable income; only the liability that remains after exemptions and credits is due in instalments.
- • Obligation to pay — s.403, Income-tax Act 2025 (earlier s.207, Income-tax Act 1961)
- • ₹10,000 threshold — s.404, Income-tax Act 2025 (earlier s.208, Income-tax Act 1961)
- • Deduction of TDS/TCS credit — s.405, Income-tax Act 2025 (earlier s.209, Income-tax Act 1961)
Government fees
Fee breakdown
| Item | Fee | Notes |
|---|---|---|
| No standalone government fee | Nil | Advance tax itself is a payment of tax, not a fee; the only cost is the tax liability plus interest under s.424/s.425, Income-tax Act 2025 (earlier s.234B/s.234C, Income-tax Act 1961) if instalments are missed. |
| Connected filing or application fee | As per applicable portal / authority schedule | Only relevant if the work includes a statutory submission such as a return, registration, or approval. |
Timeline
Typical turnaround
Typical timeline usually means a 1–3 weeks turnaround, assuming documents are complete and any board or shareholder approvals are already in place.
Fees can vary by filing type, entity class, and whether the work includes a reply, appeal, or connected computation.
The four repeals
No wealth tax, no estate duty, no gift tax, no angel tax
Four levies have been repealed or abolished over the last four decades — so most “is this taxed?” questions about wealth, inheritance, gifts, and startup fundraising have the same answer: not at the transfer itself. The tax shows up later, at the income or capital-gains stage.
The Wealth-tax Act, 1957 stands repealed from AY 2016-17. There is no wealth tax in India — net-wealth above a threshold is not a taxable event.
Repealed by Finance Act 2015, effective AY 2016-17
Finance Act 2015 s.79 — replaced by an additional 2% surcharge on income above ₹1 crore (current surcharge slabs are Finance Act-current)
The Estate Duty Act, 1953 was repealed in 1985. There is no estate duty or inheritance tax at the central level — inheriting assets is not itself a taxable event.
Repealed with effect from 16 March 1985 (deaths on/after that date)
Estate Duty (Amendment) Act 1985 — inherited assets are taxed only on eventual sale: ITA 1961 s.49(1) carries the previous owner’s cost; s.2(42A) Ex.1(i)(b) aggregates the holding period
The Gift-tax Act, 1958 ceased to apply to gifts made on or after 1 October 1998. Gifting is not a tax in itself — only selective receipts are taxed as income.
Abolished w.e.f. 1 October 1998 (Finance (No. 2) Act 1998 s.75)
ITA 1961 s.56(2)(x) — a gift is taxed as “income from other sources” only where the value received exceeds ₹50,000 without consideration, with exemptions for gifts to relatives, on marriage, or by inheritance / Will
The “angel tax” under s.56(2)(viib) is omitted for share issues on or after 1 April 2024 (AY 2025-26 onwards). Startups raising at fair value are no longer taxed on premium.
Omitted by Finance (No. 2) Act 2024 s.28, effective AY 2025-26
Pre-1-April-2024 issues remain exposed and litigable; s.68 (source of funds) scrutiny and Rule 11UA valuation discipline continue to apply
Statutory references are drawn from the Income-tax Act 1961. The Income-tax Act 2025 (assented August 2025) consolidates and renumbers the 1961 Act’s 819 sections into 536, effective 1 April 2026; the 1961 Act continues to apply to tax years beginning before that date. Section numbers cited here are the 1961 Act references; the corresponding 2025 Act numbers should be read with the official old-to-new mapping. Current surcharge slabs and capital-gains computation (post-2024 changes) are verified at engagement time, not stated here.
Related services
Keep the company moving
File ITR-6 annually by 31 October — the income tax return for all Pvt Ltd companies (s.263(1), Income-tax Act 2025 (earlier s.139(1), Income-tax Act 1961)).
Deduct and deposit TDS on time — late deposit costs interest under s.398, Income-tax Act 2025 (earlier s.201(1A), Income-tax Act 1961) and penalty under s.448, Income-tax Act 2025 (earlier s.271C, Income-tax Act 1961).
1% per month simple interest on advance tax short-paid at year end, from 1 April following the tax year (s.424, Income-tax Act 2025).
3% of the shortfall for the June, September and December instalments and 1% for March (s.425, Income-tax Act 2025).
FAQ
Frequently asked questions
What is the advance tax instalment schedule for companies?
What is the penalty for not paying advance tax on time?
Is advance tax payable if the company's tax liability is under ₹10,000?
Can a company pay the full advance tax in one instalment before 15 March?
What is the deadline for the final advance tax instalment and the ITR?
How is advance tax adjusted against TDS credit?
Are the Income-tax Act 1961 section references on this page still current after the Income-tax Act 2025?
Canonical reference: https://www.pvtltd.co/services/advance-tax-planning
Get started
Ready to move this filing forward?
We can help with the filing, the legal mapping, and the follow-up work that keeps the company compliant after submission.