Quarterly Tax Compliance Checklist for Indian SMEs

A quarterly tax compliance checklist for Indian SMEs breaks down everything—GST, TDS, advance tax, and more—so you can stay compliant and avoid costly penalties.

Learn all about it in this guide. You can also download a free sample checklist for companies here. 

Taxes Requiring Quarterly Compliance for Businesses in India

Some of the key taxes in India must be paid or filed every quarter. Here’s a look at them:  

Goods and Services Tax (GST)

If your business is registered under GST, you must file GST returns every quarter (or monthly, depending on your turnover).

Most businesses registered under the Composition Scheme or with turnover below a specified threshold (currently ₹5 Crore, subject to conditions) can opt to file Quarterly Returns. 

• GSTR-4: For composition dealers
• GSTR-1: Details of all of outward supplies/sales
• GSTR-3B: Summary of sales, purchases, and taxes paid

Tax liability calculated for the quarter must be paid by the due date before filing the return.

Tax Deducted at Source (TDS) and Tax Collected at Source (TCS)

Businesses deducting TDS must file quarterly TDS returns for different types of payments/salaries. 

• Form 24Q – Salaries
• Form 26Q – Non Salary 
• Form 27Q – NRI payments
• 27EQ – TCS

The TDS amount deducted during a month must be paid to the government by the 7th of the following month.  However, the formal reconciliation and return filing is to be done quarterly.

Certificates for TDS (Form 16A) and TCS (Form 27D) must be issued quarterly after filing returns.

Advance Tax

Advance tax payments are mandatory if your income tax liability is more than ₹10,000 in a year.

Businesses (including companies and individuals with business income) must pay it in four installments across the financial year (April-March).

Three of these instalments fall within quarterly deadlines:

• 15th June: 15% of estimated liability
• 15th September: 45% (cumulative) of estimated liability
• 15th December: 75% (cumulative) of estimated liability
• 15th March: 100% (final instalment)

While the payments are quarterly, the formal calculation and reconciliation happen via the annual income tax return (ITR). 

However, missing quarterly instalments can attract interest penalties.

Breaking Down Quarterly Tax Compliance Checklist

A Quarterly Tax Compliance Checklist is a structured list of tax-related tasks your business needs to complete every three months to meet statutory tax obligations. 

It helps you stay compliant with Indian tax laws, avoid penalties, and keep your business on track.

What Does Quarterly Tax Compliance Checklist for SMEs Cover? 

• GST Returns (GSTR-1, GSTR-3B)
• Advance Tax Payment (if applicable)
• TDS Return Filing (Form 26Q, 24Q, etc.)
• Bookkeeping and Record Updates
• MCA Filings (for Pvt Ltd companies)
• Reconciliation of Financial Records
• Payment of Professional Tax (state-specific)

Who Needs Quarterly Tax Compliance Checklist?

• SMEs and startups
• Freelancers and consultants
• Pvt Ltd companies
• LLPs
• Anyone with regular income or deducting TDS

Benefits of Using Compliance Checklist: 

• Minimizes missed deadlines or filings.
• Avoids penalties and late fees for GST/TDS filing
• Maintains organized records for tax authorities and audits
• Plans for large tax outflows (e.g., Advance Tax).
• Ensures suppliers’ GST compliance to claim your ITC.

Quarterly Tax Calendar for Indian SMEs

Complete Quarterly Tax Compliance Checklist for Indian Businesses Including SMEs

This quarterly compliance checklist below covers all major tax compliance requirements for Indian businesses, with special attention to SMEs. 

You can download it for FREE here: 

How Can PKC Help With Quarterly Tax Compliance?

✅37 years expertise handling client compliances

✅Complete quarterly compliance calendar management and tracking

✅Dedicated tax advisor assigned for quarterly guidance

✅Zero interest penalties through proactive statutory compliance

✅Real-time GST return filing and advisory services

✅Quarterly TDS calculations with automated processing systems

✅Income tax advance payment optimization and planning

✅Seamless integration with existing accounting software systems

✅Automated alerts for all quarterly filing deadlines

✅Multi-location compliance coordination for corporate entities

✅Risk assessment and mitigation for quarterly exposures

Tips for Implementation of A Quarterly Tax Compliance Checklist

• Automate: Use GST/TDS software for auto-population and reminders.
• Reconcile Early: Match books with GSTR-2B (auto-drafted purchases) before filing GSTR-3B
• Verify Deadlines: Check official portals (GSTN, Income Tax) for updates – dates occasionally change.
• Document Everything: Save payment challans, return acknowledgements, and reconciliation reports.
• Build in Adequate Lead Time: Start 3–4 weeks before deadlines to allow time for issues and missing documents.
• Implement Review Protocols: Include self-reviews, senior reviews, and clear sign-off steps for accountability.
• Maintain Flexibility: Allow room for business changes and update the checklist yearly based on lessons learned.
• Track Performance Metrics: Measure completion rates, accuracy, and task time to improve future processes.

Frequently Asked Questions

1. What is a quarterly tax compliance checklist?

A quarterly tax compliance checklist is a list of all tax filings and payments businesses must complete every three months. It helps businesses including SMEs to avoid penalties and stay compliant with Indian tax laws.

2. Who needs to follow quarterly tax compliance in India?

Any business, freelancer, or company that pays GST, TDS, or advance tax must follow quarterly compliance. This applies to sole proprietors, LLPs, Pvt Ltd companies, and SMEs.

3. What are the key components of a quarterly tax checklist?

The main components include GST returns (GSTR-1 & GSTR-3B), advance tax payments, TDS return filing, and bookkeeping. For companies, it may also include MCA compliance.

4. Do I need software to manage quarterly tax compliance?

No, but using software like Zoho Books or Tally can help automate tasks and reduce errors. Manual tracking can lead to missed filings.

5. Is quarterly compliance only for taxes?

No, it can also include MCA requirements like board meetings, maintaining statutory registers, and ROC filings for companies. Tax is just one part of it.