Home > Income Tax > Advance Tax > Liability to Pay Advance Tax – Sec 207, 208

Liability to Pay Advance Tax – Sec 207, 208

U.C Date : 25 Feb 2015

An assessee is liable for payment of advance tax in accordance with provisions of section 208 to 219 in respect of total income of that financial year.
Advance tax is payable in case where the amount of tax payable in respect of such financial year is Rs. 10,000 or more.

These provisions doesn’t apply to a senior citizen who is resident in India and doesn’t have any income under head “Profits and gains from business or profession”.Senior citizen means an individual who is of 60 years or more at any time during the year.

An assessee who has opted for computing business income at the rate of 8% on presumptive basis under section 44AD, shall be exempted from payment of advance tax in respect of such business.

Related Pages to Advance Tax

Related Pages to Advance Tax

Bare Act for Sec 207 & Sec 208

Bare Act for Sec 207 & Sec 208

Sec 207 –  [(1)] Tax shall be payable in advance during any financial year, in accordance with the provisions of sections 208 to 219 (both inclusive), in respect of the total income of the assessee which would be chargeable to tax for the assessment year immediately following that financial year, such income being hereafter in this Chapter referred to as “current income”.]

[(2) The provisions of sub-section (1) shall not apply to an individual resident in India, who—

(a)  does not have any income chargeable under the head “Profits and gains of business or profession”; and

(b)  is of the age of sixty years or more at any time during the previous year.]

Sec 208 –  Advance tax shall be payable during a financial year in every case where the amount of such tax payable by the assessee during that year, as computed in accordance with the provisions of this Chapter, is [ten thousand] rupees or more.]

3 comments

  1. K G Venkataraman

    I am born on 28 May 1956 and became 60 years old on 28th May 2016.

    Am i exempted from Advance Tax.

    Kindly reply.

    Thanks
    KG Venkataraman

  2. CMA Nilamber Kumar

    very helpful.

    Thanks

Leave a Reply

Your email address will not be published. Required fields are marked *

Get updates and weekly newsletter in your email. Join more than 10,000 subscribers !