Section 403
Section 403: liability for payment of advance tax
Section 403 opens Part B of Chapter XIX, dealing with advance tax - the "pay as you earn" system that requires tax to be paid during the financial year on estimated current income, rather than only after the year ends. It also defines "current income" and carves out an exemption for resident senior citizens without business or professional income.
The basic advance tax obligation
Advance tax is payable during any financial year in respect of the current income of the assessee, as per the provisions of this Part.
"Current income" of a tax year means the total income of the assessee which would be chargeable to tax for that tax year.
Exemption for resident senior citizens
The advance tax obligation does not apply to an individual resident in India who: does not have any income chargeable under "Profits and gains of business or profession"; and is of the age of sixty years or more at any time during the tax year.
Frequently asked questions
Who is exempt from paying advance tax?
A resident individual aged 60 or more at any time during the tax year, provided they have no income chargeable under "Profits and gains of business or profession" - under Section 403(3).
What does "current income" mean for advance tax purposes?
The total income of the assessee which would be chargeable to tax for that tax year, as defined in Section 403(2).
Related sections
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