Compliance with Regulatory Norms

Ensuring advance tax payments align with the latest tax laws

Businesses are required to pay advance tax in four instalments during the financial year if their estimated tax liability exceeds ₹10,000. Timely payment ensures regulatory compliance and prevents interest under Sections 234B and 234C of the Income Tax Act. For FY 2024-25 (AY 2025-26), there are several important updates and reminders to consider.

Key Budget 2025 Updates

Aspect 2024-25 (AY 2025-26) Notes
Applicability Threshold Advance tax applies if estimated tax liability exceeds ₹10,000 in a financial year.
Due Dates No change; instalments are due on June 15, Sept 15, Dec 15, and March 15.
Presumptive Taxation (Sec 44AD/ADA) Assesses under presumptive schemes are not required to pay quarterly advance tax — 100% by March 15 is sufficient.
New Tax Regime (Sec 115BAC) Businesses opting for the new regime must lock in their choice in Form 10-IEA, applicable from AY 2024-25. Advance tax must be computed accordingly.
Digital Payments Compliance CBDT has emphasized electronic modes (NEFT/RTGS/UPI) for all tax payments to ensure traceability and ease of audit.

What We Offer

What's New in 2025?

  • E-verification of Large Transactions: If your business has high-value transactions, ensure they're reported in Form 26AS or AIS to avoid mismatch with advance tax estimates.
  • Increased scrutiny for under-reporting: Inaccurate or under-reported advance tax projections may trigger notices under the revamped faceless assessment scheme.
  • Form 3CEB Compliance: For international or specified domestic transactions, ensure Transfer Pricing documentation and advance tax assumptions are aligned.

Proactive Strategies

  • Quarterly Forecast Reviews: Reassess projected profits after each quarter to adjust tax estimates.
  • Utilize BSR Code Tracking: Track tax payments using BSR codes and Challan Identification Numbers (CIN) for seamless reconciliation with your books.
  • Sector-specific Provisions: Keep an eye on exemptions or incentives (e.g., SEZ units under Section 10AA) impacting advance tax liability.
Action Points
support

Review profit projections before every quarter.

support

Maintain updated digital records of tax payments.

support

Reconcile Form 26AS/AIS with internal accounting.

support

Seek professional advice if opting into or out of the new regime.

Regulatory Compliance Note

This guidance aligns with the provisions of the Income-tax Act, 1961, specifically

Section 208

Advance tax is mandatory where estimated tax liability exceeds ₹10,000.

Sections 234B & 234C

Interest levied for default or deferment in advance tax payment.

CBDT Circular No. 9/2021

Emphasizes digital modes of payment and self-assessment norms.

Section 115BAC (New Regime)

Requires Form 10-IEA submission by businesses opting in or out.

Section 44AD/ADA

Governs presumptive taxation where full advance tax is due by March 15.

Taxpayers are advised to refer to updated CBDT notifications and e-filing portal guidelines to ensure compliance with reporting standards and payment timelines.

Contact Us
support