Section 408
Section 408: advance tax instalments and due dates
Section 408 fixes the familiar quarterly advance tax schedule - four instalments by four dates, cumulatively building up to 100% of the year's advance tax by 15 March - along with a single-instalment rule for assessees declaring presumptive income, and a rule treating tax paid by 31 March as advance tax for the year.
The four instalments (regular assessees)
All assessees liable to pay advance tax, other than those covered by the presumptive-income rule below, must pay it on current income (computed as per Section 405) in four instalments during the financial year:
| Due date | Amount payable |
|---|---|
| On or before 15 June | Not less than 15% of such advance tax |
| On or before 15 September | Not less than 45% of such advance tax, as reduced by the amount paid in the earlier instalment |
| On or before 15 December | Not less than 75% of such advance tax, as reduced by the amount(s) paid in the earlier instalment(s) |
| On or before 15 March | The whole amount of such advance tax, as reduced by the amount(s) paid in the earlier instalment(s) |
Single instalment for presumptive-income assessees
An assessee who declares profits and gains under Section 58(2) [Table Sl. No. 1 or 3] (presumptive taxation) must pay the whole amount of advance tax on current income, computed as per Section 405, in a single instalment on or before 15 March of the financial year.
Payment by 31 March counts as advance tax
Any amount paid by way of advance tax on or before 31 March is treated as advance tax paid during the financial year ending on that day, for all purposes of the Act.
Frequently asked questions
What are the four advance tax due dates and cumulative percentages?
15% by 15 June, 45% by 15 September, 75% by 15 December, and 100% by 15 March, each figure being cumulative and reduced by amounts already paid in earlier instalments.
Do presumptive taxation assessees have to pay advance tax in four instalments?
No - an assessee declaring profits under Section 58(2) [Table Sl. No. 1 or 3] pays the entire advance tax in a single instalment on or before 15 March, under Section 408(2).
Does advance tax paid on 31 March still count for that financial year?
Yes - Section 408(3) treats any amount paid by way of advance tax on or before 31 March as advance tax paid during that financial year.
Related sections
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