Blog · Income year 1 July 2025 to 30 June 2026
Must you send a statement of income each quarter?
Some persons with business or rent income send a statement of income and pay tax each quarter. Most small businesses do not, because of a limit in the Act.
The limit
The limit is Rs 4,000,000 of gross income from business and rent in the last income year. A statement for each quarter is necessary only above this limit. Below it, you send only the return for the year.
Source: s.106(2)(a).
The other exceptions
Above the limit, a statement is also not necessary in these conditions:
- Take a quarter of the chargeable income from business and rent in the last income year. The tax on it is Rs 500 or less.
- You had no chargeable income in the last income year.
- Your gross income was Rs 10,000,000 or less, and your work is an activity in the Thirteenth Schedule.
Source: s.106(1) and (2).
The due dates
| Quarter | Statement and payment due |
|---|---|
| July to September | 2 days before the end of December. Do not count Saturdays and public holidays. |
| October to December | 31 March |
| January to March | 2 days before the end of June. Do not count Saturdays and public holidays. |
There is no statement for April to June. The return for the year includes that quarter.
How to calculate the tax for a quarter
The Act gives two methods. The first method uses a quarter of last year's chargeable income. The second method uses the actual income and expenses of the quarter, less 25% of your reliefs for the year.
Source: s.107.
If you pay after the due date
If you pay the tax for a quarter after the due date, there is a penalty. The penalty is 2.5% of the unpaid tax. s.110.
Questions people ask
Who must pay tax each quarter?
A person with more than Rs 4,000,000 of gross income from business and rent in the last income year. Some exceptions in s.106 apply.
When is the statement for October to December due?
31 March.
Is there a statement for April to June?
No. The return for the year includes that quarter.
Let IT01 AI do these steps
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This article explains the law as it stands on 3 October 2026. It is not tax advice.