Advance Tax Calculation & Payment Services
Expert computation of quarterly advance tax instalments under Sec 207–209, Challan 280 filing, 26AS verification, and year-end reconciliation — so you never pay 1% monthly interest under Sec 234B or 234C.
207 – 209
IT Sections
4 per year
Instalments
Tax > ₹10,000
Threshold
Sec 234B + 234C
Interest Rate
1% per month
Penalty
Senior citizens (no biz income)
Exemption
What Is Advance Tax?
Advance Tax, commonly called “pay-as-you-earn” tax, is the income tax payable in the same financial year in which you earn the income — rather than as a lump sum at the end of the year while filing your ITR. Governed by Sections 207 to 219 of the Income Tax Act, 1961, it requires taxpayers to estimate their annual income and pay tax in four quarterly instalments.
If your estimated tax liability after TDS exceeds ₹10,000 in a financial year, you are legally obligated to pay advance tax by the prescribed dates — 15 June, 15 September, 15 December, and 15 March. Failure to pay or underpayment triggers interest under Sections 234B and 234C at 1% per month on the shortfall, which can significantly inflate your total tax outgo.
Company Avenue Advisory handles the complete advance tax cycle — from mid-year income estimation, regime selection, and TDS offset, to Challan 280 generation, payment, and year-end reconciliation with your ITR data.
Instalments at a Glance
Who Needs to Pay Advance Tax?
Any individual, HUF, firm, LLP, or company with estimated tax liability above ₹10,000 (after TDS) must pay advance tax. Here are the most common categories.
Freelancers & Consultants
Income from professional services—design, IT, writing, coaching—with no TDS deduction by clients triggers advance tax.
Salaried with Capital Gains
Employees who sell shares, mutual funds, or property mid-year face additional tax not covered by employer TDS.
Business Owners & Proprietors
Traders, manufacturers, and retailers with annual income exceeding basic exemption limits are required to pay in advance.
Company Directors & Partners
Directors of private limited companies and LLP partners who receive dividends or profit distributions beyond salary.
Stock & Derivatives Traders
F&O traders and intraday equity traders with significant profits from the securities market must pay advance tax quarterly.
Rental Income Earners
Individuals and HUFs deriving rental income from residential or commercial property in excess of deductions.
NRIs with Indian Income
Non-resident Indians earning Indian-sourced income—rent, capital gains, interest—on which TDS is not fully deducted.
Professionals (CA / Doctor / Lawyer)
High-earning professionals in practice whose gross receipts cross threshold limits and whose self-assessment tax would exceed ₹10,000.
Key Benefits of Timely Advance Tax Payment
Beyond legal compliance, proactive advance tax management delivers real financial advantages for individuals and businesses.
Avoid 1% Monthly Interest (234B & 234C)
Non-payment or under-payment of advance tax attracts simple interest at 1% per month under Sec 234B (default) and 234C (deferment). Our timely computation and payment ensures zero interest outgo.
Smooth Cash-Flow Planning
Spreading tax liability across four instalments prevents a lump-sum year-end outflow and helps you plan working capital and investments more efficiently.
No Surprise Tax Demand
Accurate advance tax payment means your ITR self-assessment tax demand is minimal or nil, avoiding last-minute cash crunches in March-April.
Better Audit Standing
Regular advance tax payments demonstrate financial discipline and reduce the likelihood of income tax scrutiny or audit selection.
Corporate Governance Compliance
For companies and LLPs, proper advance tax compliance is a key metric for statutory auditors and ROC-level governance reviews.
Avoid Prosecution Risk
Wilful non-payment of advance tax can attract proceedings under Section 276C of the Income Tax Act in addition to interest and penalty.
Professional Financial Planning
Our computation covers all income heads—salary, business, capital gains, rental, other sources—to give you a precise tax estimate mid-year.
Peace of Mind
Outsource the entire advance tax calendar—estimation, challan generation, payment, and 26AS verification—to our experts.
How We Handle Your Advance Tax
An 8-step end-to-end process from income estimation to year-end ITR reconciliation.
Income Estimation
We project total income for the financial year across all heads—salary, business profit, capital gains, rent, and other sources—based on current-year data provided by you.
Tax Calculation (Old / New Regime)
Apply applicable slab rates under both regimes, factoring in eligible deductions (80C, 80D, HRA, etc.) to determine which regime is more beneficial and compute gross tax liability.
TDS Credit Adjustment
Offset TDS already deducted by employers (Form 16), clients (26AS), banks (on interest), and other deductors to arrive at net advance tax payable.
Net Advance Tax Determination
Calculate the exact amount due per instalment—15% by 15 Jun, 45% by 15 Sep, 75% by 15 Dec, 100% by 15 Mar—ensuring compliance with Sec 208 thresholds.
Challan 280 Generation
Prepare Challan ITNS 280 online via the IT portal or NSDL with accurate assessment year, PAN, payment type (Advance Tax = Code 100), and amount.
Payment Before Due Date
Make payment through net banking, debit card, or over-the-counter at authorised banks. Provide you with BSR code and challan serial number for records.
26AS Verification
Confirm that the advance tax payment is correctly reflected in Form 26AS under Part C within 3-5 banking days of payment.
Year-end Reconciliation
Prepare a final reconciliation of total advance tax paid versus actual tax liability computed while filing ITR to minimise self-assessment tax or claim refund.
Documents Required for Advance Tax Computation
Gather these documents to enable accurate estimation of your advance tax liability. We provide a detailed checklist on engagement.
4
Quarterly Instalments
Fully managed by our team
Advance Tax Payment Timeline
A clear view of the advance tax calendar from income estimation to year-end ITR reconciliation.
Income Estimation
April – MayProject annual income from all sources and estimate total tax liability for the year.
1st Instalment
By 15 JunePay at least 15% of annual advance tax. Shortfall attracts Sec 234C interest of 1%/month for 3 months.
2nd Instalment
By 15 SeptemberCumulative payment must reach 45% of total advance tax. Revise estimate if income has changed.
3rd Instalment
By 15 DecemberCumulative 75% payment due. Update P&L and capital gains data for Q3 revised estimation.
4th Instalment
By 15 MarchFull 100% advance tax must be paid. Missing this triggers Sec 234B interest from 1 April onwards.
Year-end Reconciliation
April (ITR Filing)Match total advance tax paid with ITR computation. Claim refund or pay minimal self-assessment tax.
Starting at
₹1,999
All 4 instalments covered
What You Receive
Every engagement includes four documented deliverables covering the full advance tax cycle, from computation to year-end reconciliation.
Why Company Avenue Advisory?
Trusted by thousands of taxpayers across India for accurate, timely advance tax computation and filing.
Advance Tax — Frequently Asked Questions
Everything you need to know about advance tax calculation, payment, and compliance.
Related Services
Round out your direct tax compliance with these complementary services.
Stop Paying 1% Monthly Interest.
Pay Advance Tax On Time — Every Time.
Our experts estimate your income, compute instalments across all income heads, generate Challan 280, and reconcile with your ITR — all for a flat fee of ₹1,999.
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