Income Tax & Compliance

Advance Tax Planning & Computation

Pay Tax in Advance — Avoid Interest, Maintain Cash Flow Discipline

✦ Four Instalments Planned Correctly ✦ No 234B/234C [new-424/425] Interest ✦ Cash Flow-Friendly Tax Payment
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What is Advance Tax?

Advance Tax is the payment of income tax in instalments during the financial year itself — before the financial year ends — rather than paying the entire tax at the time of filing your ITR. It is mandatory for any taxpayer whose total tax liability for the year (after TDS) is expected to be ₹10,000 or more. Advance tax is payable in four instalments: 15% by 15th June, 45% by 15th September, 75% by 15th December, and 100% by 15th March. Failure to pay advance tax results in interest under Section 234B [new-section 424] (for default) and Section 234C [new-section 425] (for short payment of each instalment) at 1% per month.

For business owners, HNIs, and professionals — especially those with variable income, capital gains from asset sales, or freelance earnings — advance tax planning involves estimating the year's total income as accurately as possible each quarter, computing the tax due, adjusting for TDS already deducted, and planning cash flows for the advance tax payments without disrupting working capital. Getting this right avoids a large year-end tax bill and the associated interest.

⚠️ Failure to pay advance tax results in interest under Section 234B [new-section 424] and Section 234C [new-section 425] at 1% per month.

Who Needs This?

✔ Business owners with profits not subject to TDS
✔ Freelancers and professionals with irregular income patterns
✔ HNIs expecting capital gains from property or investment sales during the year
✔ Salaried individuals with significant non-salary income (rent, dividends, capital gains)
✔ Retired individuals living on interest, dividends, and investment withdrawals
✔ Companies and LLPs computing advance tax for the first time

Pricing

RECOMMENDED

Advance Tax Advisory

₹1,999/year (4 quarterly computations)

Quarterly instalment planning

Ideal for: Self-employed individuals, HNIs, and small business owners

  • ✓ Annual income projection and tax estimation
  • ✓ Quarterly advance tax computation
  • ✓ Challan preparation for each instalment
  • ✓ Adjustment for TDS already deducted
  • ✓ Year-end reconciliation with actual tax
VITTAX Fee: ₹1,999/year (4 quarterly computations)  |  Govt. Fees: Nil
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Frequently Asked Questions

What interest applies if I underpay advance tax?

Section 234C [new-section 425]: 1% per month (or part month) on the shortfall for each instalment that is less than the required percentage (15%/45%/75%/100%). Section 234B [new-section 424]: 1% per month on the total tax underpaid from April to the date of filing the return. VITTAX ensures you pay the right amount each quarter.

Do salaried employees need to pay advance tax?

For salaried employees, TDS deducted by the employer generally covers the advance tax obligation. However, if you have additional income (rent, capital gains, interest, freelance) and the total tax liability after TDS exceeds ₹10,000 — you must pay advance tax on the additional income.

Quick Enquiry

Advance Tax Advisory₹1,999/yr

At a Glance

ThresholdTax > ₹10,000
Instalments4 per Year
Interest (Default)1%/month
Govt. FeesNil

⚡ Instalment Schedule

15th June15% of Tax
15th September45% of Tax
15th December75% of Tax
15th March100% of Tax

Plan Your Advance Tax for This Year

Avoid Interest with VITTAX → We compute each instalment, prepare challans, and keep you on track all year

Avoid Interest with VITTAX → Talk to Expert