Advance Tax & GST: What Every Business Owner Should Know

For any growing business, tax compliance isn't just a legal obligation—it’s part of long-term financial health. While GST and Advance Tax are often handled separately, both play crucial roles in maintaining smooth cash flows and avoiding penalties. At Innovex Business Adviser LLP, we ensure businesses understand and act on these requirements proactively.

🔍 What Is Advance Tax?

Advance Tax refers to paying your income tax liability in instalments during the financial year, rather than as a lump sum at year-end. It applies when your total tax liability exceeds ₹10,000 in a financial year.

Applicable to:
✔️ Individuals
✔️ Companies
✔️ Freelancers & Professionals
✔️ Businesses

Due Dates for Non-Corporate Assessees (FY 2025-26):

Instalment Due Date Amount Payable
1st 15th June 15% of tax
2nd 15th Sept 45% cumulatively
3rd 15th Dec 75% cumulatively
4th 15th Mar 100%

 

Missed payments attract 1% interest under Section 234B/234C.

🧾 Advance Tax vs GST: Are They Connected?

While Advance Tax is based on income, GST is based on sales turnover. However, both affect your working capital, and incorrect planning may lead to cash crunches or interest liabilities.

At Innovex, we’ve often seen businesses make these mistakes:

  • ❌ Estimating profits without factoring GST liabilities.

  • ❌ Delayed filing of GST returns, impacting income tax calculations.

  • ❌ Not reconciling GSTIN data with books while computing advance tax.

💡 Pro Tip by Our Experts

“Use your GSTR-3B and GSTR-1 data to estimate turnover trends. Combine this with projected margins to estimate advance tax more accurately.”

✅ Innovex Approach: What We Do for You

At Innovex Business Adviser LLP, we simplify your compliance lifecycle with:

  • 🔍 Advance tax estimations backed by real-time accounting data.

  • 🧾 GST reconciliations for accurate profitability analysis.

  • 📅 Automated reminders for due dates.

  • 💬 Expert one-on-one CA consultation for tax planning.

📌 Final Thoughts

Advance tax isn't just a statutory duty—it’s a smart business practice. When coordinated with GST planning, it helps you avoid surprises and penalties. If you're unsure about your current tax position, talk to our team today.

📞 Reach us at: +91 98982 54421
📧 Email: admin@innovexbusiness.com
🏢 Ahmedabad Offices: Amraiwadi | Paldi