Rule 223: Intimating a lower advance tax estimate in Form No. 152
A person served with an Assessing Officer order under section 407(1) or (4) may estimate that the advance tax payable on current income is lower than the amount in the order. Section 407(8) allows that person to send an intimation to the Assessing Officer and pay as per the estimate. Rule 223 says the intimation is made in Form No. 152.
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Bare law
Rule 223 - Estimate of advance tax under section 407(8)
The intimation, which an assessee has to send to the Assessing Officer under section 407(8), shall be in Form No. 152.
Rule breakdown
What the rule does
Rule 223 prescribes Form No. 152 as the form for the intimation to the Assessing Officer under section 407(8).
How section 407(8) works
The intimation applies where the person estimates the advance tax payable on current income, calculated as laid down in section 405, to be lower than the amount in the order.
The person then pays advance tax as per the estimate, at the appropriate percentage, on or before each instalment due date in section 408 falling after the date of the intimation.
If the estimate later turns out higher than the amount in the order or in the intimation, section 407(9) requires payment of the higher amount on or before the due date of the last instalment in section 408.
Key takeaways
Form No. 152
The section 407(8) intimation of a lower estimate.
Applies to later instalments
The estimate governs instalments falling after the intimation.
Upward revision
Section 407(9) applies if the estimate turns out higher.
Practical checklist
- Send Form No. 152 before the next instalment you want the estimate to apply to.
- Keep your working of current income as calculated under section 405.
Avoid
- Do not reduce payments without sending the Form No. 152 intimation.
FAQs
To whom is Form No. 152 sent?
To the Assessing Officer, under section 407(8).
Which instalments does the estimate affect?
Instalments under section 408 whose due dates fall after the date of the intimation.
What if my income later rises?
Section 407(9) requires advance tax on the higher estimate to be paid on or before the due date of the last instalment in section 408.
Is Form No. 152 used without a section 407 order?
Section 407(8) applies to a person served with an order under section 407(1) or (4).
Glossary
- Current income
- Income of the current tax year on which advance tax is calculated under section 405.
- Intimation
- The Form No. 152 communication to the Assessing Officer under section 407(8).