A business example
A business's internal forecast changes after it wins a large new contract midway through the year.
Original estimate
The team estimates the year's income and associated tax position.
Updated facts
The new contract changes forecast profit and the tax estimate.
Payment review
The team compares revised liability, available credits and amounts already paid.
What this shows
The useful exercise is to refresh the forecast and payment working. This scenario does not supply instalment dates or decide whether the business is covered.
What it is often confused with
Paying advance tax does not replace filing the return or calculating final liability.
What to look at in your business
Keep the estimate, credits considered and payment challans with the year-end computation.
Context and further reading
Income Tax Department: Advance Tax. The introduction explains paying estimated income tax during the year in which the income is earned. Its older section and form references are not a current-period filing checklist; use the linked guide to distinguish the 1961 and 2025 Acts.
Reference checked 2 October 2026.
Kosha.Services · Updated 2 October 2026