Advance Tax Liability Estimation

Accurate estimation based on business income and deductions.

Understand Your Advance Tax Responsibilities

Advance tax is payable if your total tax liability exceeds ₹10,000 in a financial year. For businesses, this means projecting income accurately and paying taxes in advance to avoid penalties under Sections 234B and 234C.

With the Union Budget 2025 introducing significant reforms, precise advance tax estimation has become more critical than ever.

Key Budget 2025 Updates Impacting Advance Tax

Provision Update
Revised Tax Slabs (New Regime) Higher exemption limit and new tax rates.
Higher Standard Deduction Increased to ₹75,000, effectively making income up to ₹12.75 lakh tax-free.
Updated Filing Timeline Updated return filing allowed up to 48 months with additional taxes.
Revised TDS/TCS Thresholds Increased limits for interest and rent payments.
Start-up Incentives Increased limits for interest and rent payments.

Advance Tax Payment Schedule for FY 2025-26

Due Date Advance Tax Payable
15th June 2025 15% of total tax
15th September 2025 45% of total tax
15th December 2025 75% of total tax
15th March 2026 100% of total tax

How We Support Your Business

Service Component Our Approach
Income Projection Analyze all business income streams, including seasonal trends and one-time gains.
Expense and Deduction Analysis Apply eligible expenses, ₹75,000 standard deduction, and new provisions.
Tax Calculation Accurately compute using updated tax slabs and rates.
Instalment Planning Schedule advance tax instalments to optimize cash flow.
Compliance Management Timely reminders and updates to avoid penalties.
Advisory Support Ongoing tax planning and re-estimation based on major business changes.

Estimating Your Advance Tax Liability

  1. Project Business Income: Consider all revenue sources for the year.
  2. Deduct Allowable Expenses: Subtract valid business expenses as per updated rules.
  3. Apply Relevant Deductions: Incorporate the standard deduction and other eligible claims.
  4. Calculate Tax Liability: Use the latest tax rates.
  5. Determine Instalments: Split the liability across the scheduled advance tax due dates.

What Tax360 Does?

  • Accuracy First : Calculations based on real income and updated tax laws.
  • Penalty Protection : Stay protected from Sections 234B and 234C penalties.
  • Business-Centric Approach : Tax planning focused by scheduling and advisory.
  • Real-Time Monitoring : Adjustments based on actual business performance.
  • Dedicated Support : Proactive updates, reminders, and personal advisory.