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Tax Year

The tax year in India is from 1 April to 31 March. A different tax year is not permissible.

The tax year is termed as the “previous year” which runs from 1 April to 31 March every year, and the following year is termed as the “assessment year”. This means that in respect of the financial year running from 1 April 2020 up to 31 March 2021, the previous year is 2020-21 and the assessment year is 2021-22.

Tax Return Filing

The annual tax returns are required to be filed by 31 October after the close of the relevant tax year. In case taxpayers are required to furnish the return of international transactions, i.e., transfer pricing provisions are applicable, annual tax returns are required to be filed by 30 November following the close of the relevant tax year.

Effective 1 April 2022, taxpayers are allowed to file an amended tax return within 24 months from the end of the relevant assessment year, subject to certain conditions such as:

Payment of 25% additional amount on unpaid tax and interest in case updated return is filed within 12 months after the due date; and
Payment of 50% additional amount on unpaid tax and interest in case an updated return is filed 12 months after the due date.

A non-resident having a liaison office in India must deliver a statement in respect of its activities in a financial year to the jurisdictional tax assessing officer within 60 days from the end of such financial year.

Tax Payments

Advance Tax

Companies in India are required to make advance tax payments during the relevant tax year in four instalments on a quarterly basis if the amount of the tax payable on the estimated total income is more than INR 10,000. The due date for each instalment and the amount of each instalment that is payable by a company is provided in the table below:

Due Date of Instalment	Advance Tax Payable
On or before 15 June	Not less than 15% of the advance tax.
On or before 15 September	Not less than 45% of the advance tax, as reduced by the amount, if any, paid in the earlier instalment.
On or before 15 December	Not less than 75% of the advance tax, as reduced by the amount or amounts, if any, paid in the earlier instalment or instalments.
On or before the 15 March	100% of the advance tax, as reduced by the amount or amounts, if any, paid in the earlier instalment or instalments.

Any balance taxes are required to be paid in the form of self‐assessment tax before the tax return is filed.

Withdrawal of Outstanding Tax Demands

Budget 2024-25 dated 1 February 2024, provided for the withdrawal of old disputed tax demands (including principal, interest, fee, cess and penalty) outstanding as on 31 January 2024 under the Income Tax Act, Wealth Tax Act and Gift Tax Act. The monetary limits for the withdrawal are as follows:

Until the assessment year 2010-11, outstanding demands up to INR 25,000; and
From the assessment year 2011-12 to 2015-16, outstanding demands up to INR 10,000.

A maximum ceiling of INR 100,000 is applicable per assessee for the total amount of remission with respect to all assessment years. Additional details in this regard have been notified by CBDT by issuing a circular dated 13 February 2024.

Availability of E-Filing

E-filing is mandatory for companies and is available via the Income Tax Department’s e-filing portal.

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