Advance Tax: Don’t Wait till the End of the Year
Many taxpayers assume that once TDS is deducted, their tax responsibility is over until ITR filing season arrives next.
But every year, thousands of taxpayers are surprised to discover interest charges under Sections 234B and 234C – even after filing their returns correctly.
The reason is often Advance Tax.
Under the Income Tax Act, if your total tax liability after adjusting TDS exceeds ₹10,000 during a financial year, you may be required to pay tax in instalments throughout the year instead of waiting until ITR filing.
This is commonly applicable to individuals’ earning income from:
- ✔ Capital Gains from various investments
- ✔ Fixed Deposit Interest
- ✔ Rental Income
- ✔ Business or Professional Income
- ✔ Other income not fully covered by TDS
Who is Exempt?
Senior citizens aged 60 years or above who do not have business or professional income are generally exempt from Advance Tax provisions.
Advance Tax Due Dates
- 15th June – 15% of total tax liability
- 15th September – 45% of total tax liability
- 15th December – 75% of total tax liability
- 15th March – 100% of total tax liability
What Happens If You Miss It?
- Section 234C – Interest for delay or shortfall in instalments
- Section 234B – Interest if less than 90% of total tax liability is paid before 31st March
The key lesson is simple: tax planning is not just about filing your ITR correctly – it is also about paying taxes on time. A little planning during the year can help avoid unnecessary interest costs later.
(Contributed by Prateek Agarwal, Financial Planner, HNI Desk, Hum Fauji Initiatives)
Timely tax payments are only one part of effective tax planning. Ensure your taxes, disclosures, and compliance requirements are reviewed thoroughly before filing.
Explore HFI’s ITR Filing Support
Market Crash or Just a Correction? Know the Difference Before You Panic
A client recently asked: “Markets are falling every day. Should we stop investing until things become clearer?”
It’s a fair question. When a portfolio falls by 10%, it doesn’t feel like a “correction” – it feels like a crisis. But not every market decline is a crash.
Source: Schwab Center for Financial Research
What History Tells Us
Since 1974, markets have experienced many corrections of roughly 10-20%, but only a minority evolved into full-fledged bear markets. Corrections are a normal feature of investing; bear markets are less frequent and are typically associated with deeper economic stress or major global events.
The important distinction is that most corrections do not become bear markets. Yet investor behaviour often flips from “I should invest more” when markets rise to “Maybe I should stop” when markets fall.
The better question is not “How much has my portfolio fallen?” It is:
“Has the long-term story changed, or has sentiment simply changed?”
Corrections test patience. Crises test conviction. Long-term wealth is often built by investors who understand the difference and avoid making emotional decisions during temporary declines.
(Contributed by Abhilash Jha, Financial Planner, Team Sukhoi, Hum Fauji Initiatives)
Is Your Portfolio Prepared for Volatility?
From New Father to Future Planner: How an Officer Started Building Wealth for His Daughter from Day One
The birth of a child changes everything.
Priorities shift. Responsibilities grow. And suddenly, the future becomes much more important than the present.
Recently, one of our officer client was blessed with a baby daughter. Amidst the celebrations, he made a decision that stood out – he started investing for her future immediately after her birth.
Why so early?
A monthly SIP of just ₹5,000, started at birth and continued for 21 years, can potentially grow to around ₹50 lakh at a 12% annual return against a contribution of Rs 12.6 Lakhs in small amounts.
Increase that to ₹10,000 per month, and the corpus could potentially exceed ₹1 crore.
And if it is ‘Stepped Up’ automatically by 10% each year as the salary increases, the same amounts double to Rs 1 Crore and 2 Crores!
The difference is not the investment amount alone. The difference is starting early.
Many parents begin planning only when school admissions, coaching expenses, or college applications start approaching. By then, valuable years of compounding have already been lost.
This officer chose a different approach. He viewed every month after his daughter’s birth as an opportunity to build her future.
Whether the goal is higher education, professional qualifications, studying abroad, or supporting future aspirations, early planning can significantly reduce the financial burden later.
Parenthood is not only about providing for today. It is also about preparing for tomorrow.
And sometimes, the most valuable gift a parent can give a child is not something they can hold today – but something that quietly grows in the background for years to come.
(Contributed by Yogesh Gola, Relationship Manager, Advisory Desk, Hum Fauji Initiatives)
Build Your Child’s Investment Plan
What did our clients ask us in the last 7 days
Query –
I Found Physical Share and Bond Certificates of my Late Father. How Can They Be Dematerialized and Transferred to the Legal Heirs?
Our Reply –
Many families discover old share certificates years after the demise of a parent and assume they have little or no value. However, these certificates may still represent valuable investments that can be claimed and transferred.
The first step is to determine whether a nominee was registered. If a valid nomination exists, the nominee can approach the company or its Registrar & Transfer Agent (RTA) for transmission of the securities.
If no nomination was registered, the legal heirs must submit the death certificate, KYC documents, and prescribed forms to the RTA/company. The RTA will verify the holdings and account for any bonus issues, stock splits, mergers, or other corporate actions that may have taken place over the years.
For holdings up to ₹5 lakh per company, transmission can generally be completed through prescribed forms and supporting documents. For higher-value holdings, a Succession Certificate, Probate, or Letter of Administration may also be required.
Once the transmission is completed, the securities can be converted into electronic form through a Demat account by submitting a Dematerialisation Request Form (DRF) to the DP (Depository Participant).
Remember: Before discarding old physical certificates, verify their status. Many forgotten investments can still be recovered and may be worth significantly more than their original value.
(Contributed by Team Sukhoi, Hum Fauji Initiatives)
👉 Found old share certificates, bonds, or forgotten investments?
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