pvtltd.co

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 s.234B and s.234C interest modelled upfront so no year-end surprise is left to the ITR.

Reviewed by CA Harun Raaj, ICAI Reg. No. 238303·Last reviewed:
Starting from ₹1,999Typical timelineAdvance Tax

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.234B and s.234C is modelled upfront so there are no year-end surprises.

What is included
  • • 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
Documents required
  • • PAN, Aadhaar, or entity tax data
  • • Form 16, AIS, 26AS, or return history
  • • Bank statements and ledgers
  • • Notice, contract, or transaction records, if any
Government fees

See the fee table below for the statutory filing charge and common delay logic.

Legal basis
  • • Section 207 of the Income-tax Act 1961
  • • Section 208 of the Income-tax Act 1961
  • • Section 209 of the Income-tax Act 1961
  • • Section 211 of the Income-tax Act 1961
  • • Section 234B of the Income-tax Act 1961
  • • Section 234C of the Income-tax Act 1961
Get a quoteExplore more services

Process

How the service works

The workflow is built to be predictable: document collection, legal review, filing, and post-filing follow-through.

Step 1Compute

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.209.

Step 2Schedule

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 (s.211 read with the First Schedule).

Step 3Review

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.

Step 4Pay

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).

Step 5Verify

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.139(1) 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 exceeds ₹10,000 (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 (s.211 read with the First Schedule). 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.211 read with the First Schedule 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.211 read with the First Schedule
  • • 45% cumulative by 15 September — s.211 read with the First Schedule
  • • 75% cumulative by 15 December — s.211 read with the First Schedule
  • • 100% by 15 March — s.211 read with the First Schedule
  • • Exempt only if estimated tax after TDS/TCS is under ₹10,000 — s.208

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.234B targets the year-end shortfall; 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.234B: 1% per month simple interest from the first instalment due date
  • • Deferred instalment — s.234C: 1% per month for three months on the shortfall of that instalment
  • • 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 exceeds ₹10,000 after TDS/TCS credit is in the net — including loss-making companies that expect a profit year, because s.207 looks at the current year's estimate, not the previous year's loss.

Startups under s.80-IAC 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.207 Income-tax Act 1961
  • • ₹10,000 threshold — s.208 Income-tax Act 1961
  • • Deduction of TDS/TCS credit — s.209 Income-tax Act 1961

Government fees

Fee breakdown

ItemFeeNotes
No standalone government feeNilAdvance tax itself is a payment of tax, not a fee; the only cost is the tax liability plus interest under s.234B/s.234C if instalments are missed.
Connected filing or application feeAs per applicable portal / authority scheduleOnly 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.

Pricing note

Fees can vary by filing type, entity class, and whether the work includes a reply, appeal, or connected computation.

Related services

Keep the company moving

ITR for Pvt Ltd

File ITR-6 annually by 31 October — the income tax return for all Pvt Ltd companies (s.139(1)).

TDS Compliance

Deduct and deposit TDS on time — late deposit costs interest under s.201(1A) and penalty under s.271C.

Section 234B interest

1% per month simple interest on advance tax short-paid at year end.

Section 234C interest

1% per month for three months on each deferred advance tax instalment.

FAQ

Frequently asked questions

What is the advance tax instalment schedule for companies?
Under s.211(1) of the Income-tax Act 1961 read with the First Schedule, a company pays 15% of the estimated tax by 15 June, 45% cumulative by 15 September, 75% cumulative by 15 December and 100% by 15 March of the financial year. Each amount is paid as Challan 280 on the income-tax portal.
What is the penalty for not paying advance tax on time?
There is no fixed penalty — the cost is interest. Section 234B charges simple interest at 1% per month on the year-end shortfall from the due date of the first instalment until payment. Section 234C charges 1% per month for three months on each deferred or underpaid instalment.
Is advance tax payable if the company's tax liability is under ₹10,000?
No. Section 208 of the Income-tax Act 1961 exempts a taxpayer from advance tax when the estimated tax for the year, after deducting TDS/TCS credit, is less than ₹10,000. The obligation to pay otherwise sits in s.207.
Can a company pay the full advance tax in one instalment before 15 March?
Yes, but s.234C interest still applies on the earlier instalments that were skipped — it is charged on the shortfall of each instalment from its own due date. Paying everything by 15 March avoids s.234B (year-end shortfall) but not the s.234C deferment charge.
What is the deadline for the final advance tax instalment and the ITR?
The final instalment is due 15 March of the financial year, covering 100% of the estimated tax. The company then files its income tax return (ITR-6) by 31 October of the assessment year under s.139(1) of the Income-tax Act 1961 — late filing attracts a fee under s.234F.
How is advance tax adjusted against TDS credit?
Section 209 lets a company reduce its estimated tax by the TDS and TCS credit it expects for the year before computing instalments. The computation should use credits that are actually available for that assessment year, verified from 26AS and AIS.

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.

Get a quoteSee pricing