Glossary
Advance tax
What Advance tax means, where you will meet it and what it means for your business.
DefinitionAdvance tax is income tax paid in four instalments during the year, due on 15 June, 15 September, 15 December and 15 March, by anyone whose tax after TDS exceeds ₹10,000.
The government wants tax as you earn, not once a year. If your estimated tax for the year, after TDS credit, is more than ₹10,000, you pay 15% of it by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March. Companies, LLPs, firms, freelancers and salaried people with side income all fall under this rule; salaried people whose employer deducts full TDS usually do not. Presumptive taxpayers under 44AD and 44ADA can pay the whole amount by 15 March. Pay late or short and interest runs at 1% a month under Sections 234B and 234C. The practical fix is a quarterly estimate of profit, which also tells you whether the year is on track.
Where you will meet this term
- Income Tax Planning & FilingSalaried people, investors, NRIs, freelancers and business owners who want the return right, not just filed.from ₹999
- Accounting & MISFounders who want the books closed every month and a one-page MIS they can actually read, with GST and TDS data ready on time.from ₹4,999/month