For businesses, managing advance tax obligations while considering TDS (Tax Deducted at Source) credits is crucial to avoid interest penalties and cash flow mismatches. With FY 2024-25 underway, understanding how to compute and adjust advance tax after factoring in TDS becomes even more important, especially with recent updates from the Income Tax Department.
| Category | Update / Note |
|---|---|
| Due Date Sensitivity | No changes in advance tax due dates: 15th June, 15th Sept, 15th Dec, 15th Mar |
| Online Verification | New pre-filled TDS credit data now visible in AIS (Annual Information Statement) |
| Mismatch Handling | Discrepancies between 26AS & AIS can now be reported directly from portal |
| Updated TDS Compliance | Revised TDS return filing timelines – ensure vendors file 26Q / 27Q promptly |
| Penalty Alert | Interest under 234B & 234C applies if advance tax is short after TDS credit |
| Form 26AS + AIS Reconciliation | Mandatory for tax audits and scrutiny-prone businesses |
| Category | Update / Note |
|---|---|
| Estimated Total Tax Liability (FY 24-25) | 5,00,000 |
| Less: TDS Deducted till 15th Sept | 1,50,000 |
| Advance Tax Paid (Q1 & Q2) | 50,000 |
| Remaining Tax Payable | 3,00,000 |
| Balance Advance Tax Due (by 15 Dec & 15 Mar) | 3,00,000 |
Always use TDS challan summary and 26AS for confirmation before each due date.
Automate TDS tracking: Integrate TDS entries with your accounting or ERP system. Reconcile before every quarter: Match 26AS & books before each due date. Vendor compliance: Ensure vendors file timely TDS returns for you to claim credit. Don't wait for March: Many taxpayers rush to adjust in March – plan well in Q2 & Q3.Advance tax isn't a once-a-year activity. It's a dynamic process tied closely to your income flows and TDS credits. Monitor, reconcile, and adjust in real time to stay penalty-free.
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