Do you need to pay?
Whether section 147 applies to you, given your income and exclusions.
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We calculate your quarterly advance tax under section 147, adjust it for this year's expected income and the tax already withheld from you, prepare the payment challans and estimate where you will land at year end, so there are no surprises in your return.
Advance tax means paying income tax during the year rather than all at once when you file. Pay too little and default surcharge builds; pay too much and your cash is tied up with FBR. The right number depends on this year's income, not just last year's.
Under section 147 of the Income Tax Ordinance, 2001, companies and AOPs pay advance tax in quarterly instalments, due by 25 September, 25 December, 25 March and 15 June. Individuals generally pay by the 15th of the same months if their latest assessed taxable income, after exclusions such as certain salary income, was Rs 1 million or more. Instalments are usually based on the latest assessed tax, adjusted for tax already withheld at source, and a taxpayer who expects lower tax for the year can estimate and pay accordingly, within the rules.
Getting it right means looking forward. We review your management accounts or income during the year, account for tax withheld on your receipts, and estimate your final liability so the instalments track reality. Our income tax planning team can then look at the year-end position before it is too late to act.
A fixed fee per quarter, or included in our income tax compliance package.
Whether section 147 applies to you, given your income and exclusions.
Each quarter's instalment worked out from the latest assessed tax and this year's position.
Tax already deducted from your receipts taken into account.
A forecast of your final liability so instalments stay on track.
Revised estimates filed where your tax for the year is expected to be lower.
PSIDs prepared so each instalment is paid by its due date.
Each instalment date diarised and reminded.
Instalments paid matched to the credit claimed in your return.
These are the issues we see most often in advance tax payments.
Unpaid or late instalments under section 147 attract default surcharge.
We diarise and prepare every payment.Paying on last year's assessment when income has grown leaves a large balance due.
We track this year's income.Paying full instalments when income has fallen ties up cash unnecessarily.
We estimate the right amount.Ignoring tax already withheld at source means paying twice in the short term.
We adjust for credits.Companies and AOPs pay on different dates from individuals in most quarters.
We use your correct dates.Advance tax paid but not matched in the return is effectively lost.
We reconcile at year end.Share management accounts or income details before each quarter.
We check whether advance tax applies and what you paid last year.
A fee per quarter or a yearly package.
Income to date and withholding reviewed.
Instalment confirmed and PSID prepared.
All instalments matched in your return.
Quarterly instalments based on corporate profits.
Partnerships paying advance tax on business income.
Doctors, consultants and others above the threshold.
Sole proprietors with growing business income.
Individuals with significant rental income.
Businesses whose income varies sharply through the year.
Because we often keep your books too, your instalments reflect what is actually happening in your business this year.
Instalments based on this year's income, not just last year's.
ACCA and ICAP Chartered Accountant qualifications and an FBR-registered income tax practitioner.
Withholding at source deducted before you pay.
Every instalment diarised for your taxpayer status.
Instalments reconciled in your return automatically.
A fixed quarterly or annual fee.
Have a question that is not here? Send it to us on WhatsApp and we will reply the same day.
Tell us your taxpayer type and how this year is going. We will calculate your next instalment and quote a fixed fee.
Book your free consultationThis page is general information about our services, not tax, legal or financial advice for your specific situation. Laws, rates and deadlines change with each Finance Act and official notification.