Advance Tax is the income tax paid in instalments during the financial year, instead of a lump sum at the end. If your annual tax liability exceeds ₹10,000 (after TDS), you’re required to pay advance tax—this includes freelancers, business owners, and salaried individuals with additional income.

Advance tax must be paid in four instalments:

• 15th June – 15% of total tax liability

• 15th September – 45% of total tax liability

• 15th December – 75% of total tax liability

• 15th March – 100% of total tax liability

TDS (Tax Deducted at Source) is deducted by employers or other payers before making specific payments like salary, rent, professional fees, etc. Businesses and employers who deduct TDS must file quarterly TDS returns with the Income Tax Department.

Depending on the type of payment, the relevant TDS return forms are:

• Form 24Q – For TDS on salaries

• Form 26Q – For TDS on all payments except salaries to Indian residents

• Form 27Q – For TDS on payments to non-residents

• Form 27EQ – For TCS (Tax Collected at Source)

Failure to pay advance tax or shortfall in payment results in interest under Sections 234B and 234C. The longer the delay, the higher the interest charged.

Late or incorrect TDS filings attract:

• Late filing fee under Section 234E

• Penalty under Section 271H

• Interest on late TDS deposit under Section 201(1A)

Yes, correction statements can be filed to rectify errors like wrong PAN, incorrect amount, or deductee details.

Only if your employer has not deducted sufficient TDS or if you have additional income (like interest, rent, or capital gains), then you may need to pay advance tax.

We help you:

• Calculate and file advance tax

• Deduct and deposit TDS accurately

• File all required TDS returns on time

• Respond to income tax notices

• Avoid penalties and interest with expert guidance