Penalty Avoidance & Tax Compliance Service

Advance tax is not just a best practice It's a legal obligation.

Incorrect or delayed payments can attract interest penalties under Sections 234B and 234C of the Income Tax Act.

Our Penalty Avoidance & Tax Compliance Service ensures individuals make accurate and timely payments protecting you from unnecessary financial penalties and compliance risks.

What We Offer

Timely Monitoring of Due Dates

Reminders and scheduling for all advance tax due dates

  • 15th June 2025
  • 15th September 2025
  • 15th December 2025
  • 15th March 2026
Correct Estimation of Tax Liability

Regular calculations based on:

  • Income from salary, freelancing, business, capital gains, rental income, and other sources.
  • Latest slab rates and deductions announced in Budget 2025.
  • Consideration of TDS and other credits.
Interest Impact Assessment
  • Predict and simulate potential penalties if advance tax is missed or underpaid.
  • Proactive adjustments to avoid paying interest under Sections 234B and 234C.
Interest Impact Assessment
  • Guidance on payment methods (online challan, Netbanking).
  • Advisory on reconciliation for advance tax challans and payment proofs.

Why Advance Tax Compliance Matters?

  • Avoid to Identify Interest: Section 234B levies 1% per month for defaults in advance tax payments.
  • Prevent Penalties: Section 234C imposes penalties for missing quarterly payment milestones.
  • Stay Legally Protected: No notices, no additional burden at the time of tax filing.
  • Financial Planning: Timely payments help manage cash flows better.

Important Tabulation

Section Scenario Interest Rate & Basis
Section 234B Failure to pay 90% of total tax by 31st March 2026 1% per month till payment date
Section 234C Delay or shortfall in quarterly installment payments 1% per month for 3 months (per shortfall)

Advance Tax Payment Milestones

Quarter Ending Due Date Minimum Cumulative Tax Payable
Q1 15th June 2025 15% of estimated liability
Q2 15th September 2025 45% of estimated liability
Q3 15th December 2025 75% of estimated liability
Q4 15th March 2026 100% of estimated liability

Example Scenario

Particulars Amount (₹)
Total Estimated Tax Liability 2,00,000
TDS Available 1,00,000
Net Advance Tax to be Paid 1,00,000

Quarterly Advance Tax Requirements

Particulars Amount to be Paid
15th June 2025 ₹15,000
15th September 2025 ₹30,000 (Cumulative ₹45,000)
15th December 2025 ₹30,000 (Cumulative ₹75,000)
15th March 2026 ₹25,000 (Cumulative ₹1,00,000)

Note: If payments are missed or short-paid, interests under Sections 234B and 234C apply.

Paying tax is mandatory. Paying penalties is optional — with the right support.

With our Penalty Avoidance & Tax Compliance Service, individuals can stay organized, pay accurately, and enjoy peace of mind during tax season.

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