Yearly service
Advance tax
Advance tax is income tax a company pays in instalments during the year instead of all at once after it ends. LanceIQ works out your liability from your current books before each instalment, so you pay the right amount on time.
What is included
- Estimated profit for the year worked out from your books
- Tax liability and the instalment due calculated
- TDS and TCS credits taken into account
- A reminder with the amount before each due date
- Interest worked out if an instalment was short
- A year end true up before you file the income tax return
Who it is for
For profitable companies, and for startups turning profitable, that want to avoid interest for short or late payment of advance tax. It matters most for companies whose profit moves a lot through the year, such as seasonal sellers and fast growing startups.
What you provide
- Any large income or expense you expect later in the year
- The tax payment from your bank account
Everything else is done for you.
When it happens
| When | What |
|---|---|
| By 15 June | First instalment |
| By 15 September | Second instalment |
| By 15 December | Third instalment |
| By 15 March | Final instalment |
Common questions
Does my company need to pay advance tax?
A company pays advance tax when its estimated tax for the year, after TDS and TCS, is ₹10,000 or more.
What if we pay less than required?
Interest applies on the shortfall. Working it out from current books each quarter keeps the shortfall small or nil.
How is advance tax worked out?
We take the profit in your books so far, estimate the rest of the year from your trend and what you tell us, apply the company tax rate, subtract TDS and TCS credits, and compare the result with what you have already paid.
What if our profit changes later in the year?
Each instalment is worked out again from the latest books, so a better or worse quarter is reflected in the next payment.