ITR
Advance tax for presumptive income
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Facts
Presumptive filers under Sec 44AD and 44ADA can pay the whole advance tax in one instalment by 15 March. If tax after TDS is ₹10,000 or more and it is not paid by then, interest applies.
Provisions and law
- Sec 211 (now Sec 408)Advance tax instalments; single instalment for presumptive income
- Sec 234B (now Sec 424)Interest for shortfall in advance tax
- Sec 234C (now Sec 425)Interest for deferment of advance tax
Analysis
If your tax for FY 2025-26 is ₹60,000 and nothing was paid by 15 March 2026, Sec 234C interest is about 1% and Sec 234B interest runs at 1% a month from April till payment. Paying ₹60,000 on 15 March avoids both. For FY 2026-27, plan to pay by 15 March 2027.
Conclusion
- Estimate the year's income by early March
- Compute tax after TDS
- Pay the full amount as advance tax by 15 March
- Claim it in the return
A Savvy can do this for you
Presumptive income tax return, ITR-4 (Sugam), Sec 58 (old 44AD, 44ADA, 44AE)
₹1,999
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