Advance Tax Computation & Payment
Quarterly Advance Tax liability forecasting and electronic payment assistance for Companies, Firms, Business Owners, and Salaried Individuals with high interest income by B. Mallesh & Co., Chartered Accountants.
1. Statutory Advance Tax Mandate (Section 208)
Under Section 208 of the Income Tax Act, 1961, every assessee whose estimated net tax liability (after deducting TDS/TCS) for the financial year is ₹10,000 or more is required to pay tax in advance in quarterly installments. Senior Citizens (age 60+) having no business income are exempt.
Statutory Due Dates & Installment Percentages (Section 211)
At least 15% of estimated net advance tax liability.
At least 45% of estimated net advance tax liability.
At least 75% of estimated net advance tax liability.
100% of estimated net advance tax liability.
Section 234B & 234C Interest Penalty Warning
- • Section 234B Interest: Charged at 1% per month if advance tax paid before 31st March is less than 90% of assessed tax.
- • Section 234C Interest: Charged at 1% per month for deferment or shortfall in individual quarterly advance tax installments.
3. Mandatory Document Checklist
Data Required for Advance Tax Estimation
- Estimated Annual Turnover / Gross Income
- Estimated Annual Expenses & Depreciation
- TDS Credit Forecast (Form 26AS / AIS)
- Capital Gains Details (Property or Stock Sales)
4. Step-by-Step CA Computation Process
Step 1: Annual Income Projection & Tax Computation
Forecasting total taxable income, applying slab rates, and deducting eligible TDS credits.
Step 2: Quarterly Challan 280 Generation
Generating online e-pay tax challan (Challan 280) on e-filing portal under Code 100 (Advance Tax).
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Mancherial Office Contact
B. Mallesh & Co., Co. Laxmi Theater, Indra Nagar, Mancherial, Telangana - 504208