TL;DR for CAs
- Installments fall due in June, September, December, and March.
- Interest under 234B/234C applies on shortfalls.
- TDS credits and capital gains timing affect estimates.
What it is
Advance tax ensures income tax is paid during the year rather than only at filing.
Who it applies to
Taxpayers with estimated tax liability above the statutory threshold after TDS.
Key provisions
- Standard installment percentages by due date
- Special rules for capital gains and lottery income
- Senior citizen exception for non-business income
Practical tips for CAs
Rebuild estimates each quarter using AIS/TDS. Document client communication on 234C risk.
Common mistakes
Ignoring mid-year capital gains; double-counting TDS; missing March 15 installment.
For general guidance only. Verify with the latest Finance Act, GST notifications, and ICAI guidance notes before advising clients.