Section 409
Section 409: when an assessee is deemed to be in default
Section 409 defines when a taxpayer is treated as an "assessee in default" specifically in relation to advance tax paid on an Assessing Officer's order. Being deemed in default triggers the interest, penalty and recovery machinery in the rest of this Chapter.
What Section 409 says
"A person shall be deemed to be an assessee in default, if such person-- (a) does not pay on the date specified in section 408, any instalment of the advance tax that he is required to pay by an order of the Assessing Officer under section 407(1) and (4); or (b) does not send to the Assessing Officer an intimation under section 407(8) on or before the date on which any such instalment as is not paid becomes due; or (c) does not pay on the basis of his estimate of his current income, the advance tax payable by him under section 407(9), in respect of such instalment or instalments."
The three triggers
A person becomes an assessee in default under this section if any one of the following happens:
- Fails to pay, by the date fixed under Section 408, an instalment of advance tax ordered by the Assessing Officer under Section 407(1) and (4)
- Fails to send the Assessing Officer an intimation under Section 407(8) on or before the due date of an unpaid instalment
- Fails to pay the advance tax payable under Section 407(9) based on his own estimate of current income, for that instalment or instalments
Frequently asked questions
What does 'assessee in default' mean under Section 409?
It means the person has missed an advance tax instalment ordered by the Assessing Officer, failed to send the required intimation about a lower estimate, or failed to pay tax on the basis of his own current-income estimate, as described in clauses (a), (b) and (c) of Section 409.
What happens once a person is deemed to be in default under Section 409?
Section 409 itself only defines the default; the consequences - penalty and recovery - follow under the later provisions of this Chapter, such as Sections 411 to 413.
Related sections
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Check your advance tax default position with our tax teamLast updated 9 September 2026