Glossary
Advance Tax
Advance Tax
Advance Tax Advance Tax is the income tax paid in installments during the financial year in which the income is earned, rather than as a lump sum at the year's end. It applies if total tax liability exceeds ₹10,000 [VERIFY].
Where it appears in practice
It is critical for preventing heavy interest penalties under sections 234B and 234C [VERIFY] for delayed tax payments. Salaried individuals with high non-salary income must also pay it.
A worked example
A freelancer expects a tax liability of ₹50,000 for the year. Instead of paying it all when filing the ITR, they must pay it in four quarterly installments (15% by June 15, 45% by Sep 15, 75% by Dec 15, 100% by Mar 15) [VERIFY].
Related terms
Let the practice handle it
This term sits inside real compliance work — returns, filings, and deadlines. That work is one of the services the practice runs end to end.
Income Tax Returns