Advance tax
Income tax
·
Quarterly
A profitable quarter, property sale or bonus can change the tax you need to pay before the annual return is prepared. TheTaxCo calculates the year’s expected liability, checks tax already withheld or paid, and prepares the next instalment for payment and follows up on its credit. You receive the amount, the assumptions behind it and the records needed for the next review.
For income earned between 01-04-2026 and 31-03-2027, the payment belongs to Tax Year 2026–27 under the Income-tax Act, 2025. A payment for FY 2025–26 belongs to AY 2026–27 under the earlier Act, even if you make it during 2026. Selecting the correct period prevents the payment being allocated to the wrong year. Income Tax Department payment guidance.
When an estimate is needed
Advance tax applies when the amount calculated under the advance-tax provisions is ₹10,000 or more. Salary withholding can cover the liability, but rent, interest, business profit and investment gains may leave a balance. The statutory exemption for a resident individual aged 60 or more without business or professional income is tested separately. Sections 403–405 of the Income-tax Act, 2025.
We review the whole income position before concluding that no instalment is required. A business loss does not settle the result if there is taxable income elsewhere. Equally, a large receipt is not the same as taxable profit.
For a company or business owner, this can be a quarterly engagement. For someone making one asset sale, a transaction review and updated annual estimate may be enough. Incomplete books lead to a records request and a clearly marked provisional estimate; they do not make the payment obligation disappear.
What goes into the calculation
We separate actual income to date from the remaining-year forecast. Recurring income is estimated using current activity, while a property transfer, investment sale or exceptional business receipt is calculated separately. Available losses, reliefs and tax choices are considered where the supporting facts permit them.
Tax deducted or collected is reconciled with payer records and the credits expected for the year. Earlier instalments are matched to their receipts. The calculation then shows total estimated tax, credits, the cumulative instalment requirement and the further amount proposed for payment.
The input list depends on how you earn income:
A business provides current accounts, expected sales and costs, significant contracts and prior loss workings.
A salaried person provides salary changes, employer withholding and other income, including bank interest and rent.
An investor or property seller provides the acquisition history, sale documents, transaction costs and withholding evidence.
A taxpayer claiming foreign tax relief provides the related income, foreign tax and residence records.
Instalments and changing income
The ordinary cumulative schedule is 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March. The specified presumptive-income route has a single full instalment by 15 March. These are percentages of the advance-tax liability, rather than four equal payments. Section 408 of the Income-tax Act, 2025.
We update the estimate when actual results differ from the forecast. A late gain can require a separate review of the interest rules and the remaining instalments; paying more later does not automatically remove an earlier shortfall. The payment note distinguishes tax, any interest exposure and an optional cash reserve for an unsettled transaction.
Deliverables and payment responsibility
We prepare the annual estimate, instalment comparison and payment particulars, then assist with payment completion subject to your bank authorisation. Once payment is made, we check its receipt against the intended taxpayer, period and tax type and follow up on any mismatch. The record preserves the approved assumptions for each quarterly review and is updated when a significant transaction changes the estimate.
You approve the income assumptions and authorise the bank payment. We agree the preparation date from the records available and the next instalment date. A same-day estimate may be impractical where ownership, foreign income or tax credits remain unresolved.
Questions before paying
Can the estimate change every quarter? Yes. Each review incorporates newer information. Keep the earlier calculation so that the next one explains the movement in income and credits.
What if a payer has deducted tax but the credit is missing? Supply the certificate or payer confirmation and receipt details. We distinguish an expected credit from one already reflected, then explain any effect on the proposed payment.
I sold an investment after the last review. Can it wait until return season? Send the sale date, cost record and withholding details now. We can assess the effect on the remaining instalments and identify records needed for the capital-gains calculation.
Related services
Email TheTaxCo, message us on WhatsApp or book a call. Share the tax period, your income sources and the date of any recent sale or major receipt. We will identify the records needed for the next instalment review.