Section 406
Section 406: payment of advance tax by the assessee on his own accord
Section 406 is the voluntary route for paying advance tax - every assessee liable under Section 404 must pay advance tax based on their own estimate of current income, and can adjust the remaining instalments as that estimate changes through the year.
Self-estimated advance tax
Every person liable to pay advance tax under Section 404 (whether or not previously assessed by way of regular assessment) must, on his own accord, pay advance tax on the "specified sum", calculated as laid down in Section 405, at the appropriate percentage, on or before the due date of each instalment specified in Section 408.
Revising later instalments
A person who has paid one or more instalments of advance tax may increase or reduce the amount payable in the remaining instalment(s) to align with a revised estimate of the specified sum and the advance tax payable on it, and pay the remaining instalment(s) accordingly.
Meaning of "specified sum" here
For this section, "specified sum" means the current income as estimated by the assessee.
Frequently asked questions
Can an assessee change their advance tax instalment amounts mid-year?
Yes - Section 406(2) allows the amount payable in remaining instalments to be increased or reduced to match a revised estimate of current income.
What does "specified sum" mean for self-paid advance tax?
The current income as estimated by the assessee himself, under Section 406(3) - as opposed to figures from a prior regular assessment used under Section 407.
Related sections
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