TAX — Free Reconciliation

TAX — Free Reconciliation Checklist

Kya aapka Advance Tax sahi tha? — Section 234B in 5 Steps

STEP 1 | ARE YOU IN THE 234B RISK ZONE?

Tick jo applicable hain. Agar 3 ya zyada hain — Step 2 zaroor karein.

• Aapki total estimated tax liability ?10,000 se zyada hai for the year? (Salary + freelance + rent + capital gains — sab milaakar)
• Salary ke alawa koi aur income hai? (Freelance, rental, capital gains, interest income, business?)
• Aapne koi advance tax bhara hi nahi — socha TDS se kaam ho jaayega?
• Aapne advance tax toh diya, but 90% threshold cross hui ya nahi — check nahi kiya?
• Pichle saal ITR filing ke waqt koi unexpected interest demand aayi thi?

 

? Agar inme se 3 ya zyada 'yes' hain → Step 2 pe jaayein.

? Agar mostly 'no' → aap safe hain, lekin ek baar CA se confirm karein.

 

STEP 2 | COMPUTE YOUR ASSESSED TAX

Apna ITR ya Form 16 uthao — yeh numbers wahan milenge.

Line	Description	Amount (?)
A	Total tax as per ITR (gross tax liability, before any deductions)	(________________)
B	Less: TDS deducted (from Form 26AS / AIS )	(________________)
C	Less: TCS collected + any advance tax already paid	(________________)
D = A − B − C	Assessed Tax (this is the number 234B works on)	(________________)

 

Simple samajhne ke liye: Assessed tax woh tax hai jo aapko actually government ko dena tha — total tax se TDS aur reliefs kaat ke. Yahi number 90% ke test mein jaata hai.

STEP 3 | THE 90% TEST — KYA THRESHOLD CROSS HUI?

Agar aapne assessed tax ka 90% advance tax ke roop mein nahi diya — 234B laagti hai.
 

Line	Description	Amount (?)
E	Advance tax actually paid during the year	________________
F	= 0.9 × D 90% of Assessed Tax (minimum advance tax required)	________________
Shortfall =          F − E	234B applies on this amount (only if positive)	________________

 

 

90% rule: Agar aapne total assessed tax ka kam se kam 90% advance tax ke roop mein nahi diya— shortfall pe 1% per month interest lagta hai, starting April 1 of the assessment year.
Note: Assessed tax mein TDS count hota hai. Isliye pure TDS waale salaried employees generally safe hote hain — jab tak extra income na ho.

 

STEP 4 | 234B INTEREST — QUICK ESTIMATE

Rate: 1% per month (ya part of month) on the shortfall, from April 1 of assessment year.

Interest Period: April 1 of the assessment year → month in which regular assessment / ITR is filed.

Worked Example (same as the reel):

Item	Amount
Assessed Tax (D)	?1,00,000
TDS deducted (B)	?80,000
Advance tax paid (E)	Nil
90% required (F = 0.9 × ?1,00,000)	?90,000
Shortfall (F − E)	?20,000
Interest period (April to July ITR filing)	4 months

234B Interest (4 × 1% × ?20,000) ≈ ?3,200 extra

? Important: Yeh ek illustrative example hai. Actual computation exact instalment dates, assessment order date, aur individual facts par depend karta hai. Final figure cross-check karne ke liye apne CA se milein — especially agar shortfall ?10,000 se zyada ho.

 

STEP 5 | ACTION CHECKLIST — AB KYA KAREIN?
 

• Is sheet ka screenshot lo aur apne tax papers ke saath rakh lo.
• Shortfall dikh raha hai? ITR file karne se pehle apne CA se discuss karo.
  Agar interest ban chuki hai — toh use ITR mein sahi declare karna zaroori hai.

• Next year ke liye advance tax plan karo:
  June 15 → 15% | Sep 15 → 45% | Dec 15 → 75% | Mar 15 → 100% (of estimated liability)
• Agar TDS-only salaried hain but side income hai (freelance/rent) — advance tax ki liability check karo.
• Apne CA friend ya office colleague ko share karo — unka ?3,000–5,000 bach sakta hai.

Numbers Confusing Lag Rahe Hain? Let's Talk.

Agar aapka reconciliation shortfall dikha raha hai ya aap sure nahi hain — main ek short 20-minute Tax Optimisation Review karta hoon. We'll map your exact advance tax schedule for FY 2026-27 so 234B kabhi surprise nahi deta.

? Instagram DM: @cadhirajostwal

? Call / WhatsApp: +91-70200 45454

? www.cadhirajostwal.com

? Book a slot: calendar.app.google/nQZHpdXpX4dhstZd7

 

Disclaimer

Yeh checklist general educational information ke liye hai aur aapki specific situation ke liye professional CA advice ka substitute nahi hai. Tax laws change hote rehte hain — koi bhi financial decision lene se pehle CA Dhiraj Ostwal ya apne qualified tax advisor se discuss zaroor karein. Section 234B ki actual computation individual facts, instalments, aur assessment dates par depend karti hai. © CA Dhiraj Ostwal & Associates | Income Tax Penalty Zone Series | @cadhirajostwal | Pune, India