Income-tax Act,1961
Act No : 43
Section :
Computation of advance tax.
209. Computation of advance tax 2[(1) The amount of advance tax payable by an assessee in the financial ----------------------------------------------------------------------- 1 Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. Prior to the substitution, section 208, as substituted by the Finance Act, 1969, w.e.f. 1-4-1969 and amended by the Finance Act, 1972, w.e.f. 1-4-1972; Finance (No. 2) Act, 1977, w.e.f, 1-9-1977; Finance Act, 1978, w.e.f. 1-6-1978; Finance Act, 1979, w.e.f. 1-4- 1979; Finance (No. 2) Act, 1980, w.e.f. 1-9-1980; Finance Act, 1981, w.e.f. 1-6-1981; Taxation Laws (Amendment) Act, 1984, w.e.f. 2-4-1985 and the Finance Act, 1985, w.e.f. 14-5-1985, read as under: "208. Condition of liability to pay advance tax.-(I) Advance tax shall be payable during the financial year- (a) where the total income, exclusive of capital gains and income referred to in sub-clause (ix) of clause (24) of section 2, of the assessee, referred to in subclause (i) of clause (a) of sub-section (1) of section 209, exceeds the amount specified in sub-section (2), or (b) where it is payable by virtue of the provisions of section 209A. (2) The amount referred to in clause (a) of sub-section (1) shall be- (a) in the case of a company or a local authority Rs. Rs. 2,500 (b) in the case of a registered firm Rs.20,000 (c) in the case of a Hindu undivided family which at any time during the previous year has at least one member whose total income of the previous year exceeds Rs. 18,000 Rs.12,000 (d) in any other case Rs.18,000. (3) Notwithstanding anything contained in the foregoing provisions of this section, where in the case of an assessee referred to in clause (c) or clause (d) of sub-section (2), the amount of advance tax payable by him during the financial year, as computed in accordance with the provisions of this section, does not exceed fifteen hundred rupees, it shall not be necessary for such assessee to pay any advance tax during that financial year." 2 Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. Prior to the substitution, sub-section (1), as amended by the Finance Act, 1963, w.e.f. 1-4-1963; Finance Act, 1964, w.r.e.f. 1- 4-1963; Direct Taxes (Amendment) Act, 1964, w.e.f. 6-10-1964; Finance Act, 1965, w.e.f. 1-4-1965; Finance (No. 2). Act, 1967, w.e.f. 1-4- 1967; Finance Act, 1969, w.e.f. 1969, w.e.f. 1-4-1972; Finance Act, 1973, w.e.f. 1-4-1973; Finance Act, 1974, w.e.f. 1-4-1974 and the Finance Act, 1978, w.e.f. 1-6-1978, read as under: "(1) The amount of advance tax payable by an assessee in the financial year shall, subject to the provisions of sub-sections (2) and (3), be computed as follows:- (a) (i) his total income of the latest previous year in respect of which he has been assessed by way of regular assessment shall first be ascertained; (ii) the amount of capital gains and income referred to in sub-clause (ix) of clause (24) of section 2, if any, included in such total income shall be deducted therefrom, and on the balance income-tax shall be calculated at the rates in force in the financial year; (iii) the income-tax so calculated shall be reduced by the amount of income-tax which would be deductible during the said financial year in accordance with the provisions of sections 192 to 194, section 194A, section 194C, section 194D and section 195 on any income (as computed before allowing any deductions admissible under this Act) on which tax ----------------------------------------------------------------------- 1.649 year shall, subject to the provisions of sub-sections (2) and (3), be computed as follows, namely:- (a) where the calculation is made by the assessee for the purposes of payment of advance tax under sub-section (1) or sub-section (2) or sub-section (5) or sub-section (6) of section 210, he shall first estimate his current income and income-tax thereon shall be calculated at the rates in force in the financial year; (b) where the calculation is made by the Assessing Officer for the purpose of making an order under sub-section (3) of section 210, the total income of the latest previous year in respect of which the assessee has been assessed by way of regular assessment or the total income returned by the assessee in any return of income furnished by him for any subsequent previous year, whichever is higher, shall be taken and income-tax thereon shall be calculated at the rates in force in the financial year; (c) where the calculation is made by the Assessing Officer for the purpose of making an amended order under sub-section (4) of section 210, the total income declared in the return furnished by the assessee for the later previous year, or, as the case may be, the total income in respect of which the regular assessment, referred to in that sub-section has been made, shall be taken and income-tax thereon shall be calculated at the rates in force in the financial year; (d) the income-tax calculated under clause (a) or clause (b) or clause ----------------------------------------------------------------------- .LM10 -> -> is required to be deducted under the said sections and which has been taken into account in computing the said total income; (iv) the net amount of income-tax calculated in accordance with sub- clause (iii) shall, subject to the provisions of clauses (c) and (d), be the advance tax payable; [(b) * * *] (c) in cases where an estimate (including a revised estimate) is sent by the assessee under section 209A or section 212, the total income so estimated shall, for the purposes of calculation of tax under this section, be substituted for the total income referred to in clause (a); (d) in cases where- (i) the total income of the latest previous year [being a year later than the previous year referred to in clause (a)] on the basis of which tax has been paid by the assessee under section 140A. exceeds the total income referred to in clause (a), or (ii) the Income-tax Officer makes an amended order referred to in sub-section (3) of section 210 on the basis of the total income on which tax has been paid by the assessee under section 140A, the total income referred to in clause (a) shall be substituted,- (1) in a case falling under sub-clause (i), by the total income on the basis of which tax has been paid under section 140A, and (2) in a case falling under sub-clause (ii), by the total income on the basis of which the amended order under sub-section (3) of section 210 is made. Explanation.-If the assessee is a partner of a registered firm and an assessment of the firm has been completed for a previous year later than the latest previous year for which the assessee's assessment has been completed, his share in the income of the firm shall, for the purposes of clause (a), be included in his total income on the basis of the said assessment of the firm., ----------------------------------------------------------------------- 1.650 (c)shall, in each case, be reduced by the amount of income- tax which would be deductible 1[or collectable] at source during the said financial year under any provision of this Act from any income (as computed before allowing any deductions admissible under this Act) which has been taken into account in computing the current income or, as the case may be, the total income aforesaid; and the amount of income- tax as so reduced shall be the advance tax payable.] 2[(2) Where the Finance Act of the relevant year provides that, in the case of any class of assessees, net agricultural income (as defined in that Act) shall be taken into account for the purposes of computing advance tax, then, the net agricultural income to be taken into account in the case of any assessee falling in that class, shall be- (a) in cases 3[where the Assessing Officer makes an order under subsection (3) or sub-section (4) of section 210],- (i) if the total income of the latest previous year in respect of which the assessee has been assessed by way of regular assessment forms the basis of computation of advance tax payable by him, the net agricultural income which has been taken into account for the purposes of charging income-tax for the assessment year relevant to that previous year; or 4[(ii) if the total income declared by the assessee for the later previous year referred to in sub-section (4) of section 210 forms the basis of computation of advance tax, the net agricultural income as returned by the assessee in the return of income for the assessment year relevant to such later previous year;] 5[(b) in cases where the advance tax is paid by the assessee on the basis of his estimate of his current income under sub-section (1) or sub-section (2) or sub-section (5) or sub-section (6) of section 210, the net agricultural income, as estimated by him, of the period which ----------------------------------------------------------------------- 1 Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-6-1988. 2 Inserted by the Finance Act, 1974, w.e.f. 1-4-1974. 3 Substituted for where the assessee sends a statement under sub- section (1) of section 209A or where the Income-tax Officer makes an order under sub-section (1) or subsection (3) of section 210" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. Earlier, the italicised words were inserted by the Finance Act, 1978, w.e.f. 1-6- 1978. 4 Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. Prior to the substitution, clause (ii) read as under: "(ii) if the total income of the previous year on the basis of which tax has been paid by the assessee under section 140A forms the basis of computation of advance tax, the net agricultural income as returned by the assessee in the return of income for the assessment year relevant to that previous year;" 5 Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. Prior to the substitution, clause (b), as amended by the Finance Act, 1978, w.e.f. 1-6-1978, read as under: "(b) in cases where an estimate (including a revised estimate) is sent by the assessee under section 209A or section 212, the net agricultural income, as estimated by him, of the period which would be the previous year for the immediately following assessment year." ----------------------------------------------------------------------- 1.651 would be the previous year for the immediately following assessment year.] (3) Where the Finance Act of the relevant year specifies any separate rate or rates for the purposes of computing advance tax in the case of every Hindu undivided family which has at least one member whose total income of the previous year exceeds the maximum amount not chargeable to income-tax in his case, then, the 1[Assessing] Officer shall, for making an order under 2[sub-section (3) or sub-section (4) of] section 210 in the case of any such Hindu undivided family, compute (subject to the provisions of section 164) the advance tax at such rate or rates- (a) in a case where the total income of the latest previous year in respect of which the Hindu undivided family has been assessed by way of regular assessment forms the basis of computation of advance tax, if the total income of any member of the family for the assessment year relevant to such latest previous year exceeds the maximum amount not chargeable to income-tax in his case; (b) in a case where the total income of the previous year 3[in respect of which a return of income is furnished by the Hindu undivided family under section 139 or in response to a notice under subsection (1) of section 142] forms the basis of computation of advance tax, if the total income of any member of the family for the assessment year relevant to such previous year exceeds the maximum amount not chargeable to income-tax in his case.] 4[209A. Computation and payment of advance tax by assessee.-Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. It was inserted by the Finance Act, 1978, w.e.f. 1-6-1978.] ----------------------------------------------------------------------- 1 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 2 Inserted, ibid. 3 Substituted for "on the basis of which tax has been paid by the Hindu undivided family under section 140A", ibid. 4 Prior to the omission, section 209A, as amended by the Finance Act, 1979, w.e.f. 1-4-1979 and the Finance (No. 2) Act, 1980, w.e.f. 1-9-1980, read as under: "209A. Computation and payment of advance tax by assessee.-(1) Every person shall, in each financial year, on or before the date on which the first instalment, or where he has not previously been assessed by way of regular assessment under this Act, on or before the date on which the last instalment, of advance tax is due in his case under sub-section (1) of section 21 1, if his current income is likely to exceed the amount specified in sub-section (2) of section 208, send to the Income-tax Officer- (a) where he has been previously assessed by way of regular assessment under this Act, a statement of advance tax payable by him computed in the manner laid down in clause (a) or, as the case may be, sub-clause (i) of clause (d) of sub-section (1) of section 209, or (b) where he has not previously been assessed by way of regular assessment under this Act, an estimate of- (i) the current income, and (ii) the advance tax payable by him on the current income calculated in the manner laid down in section 209, and shall pay such amount of advance tax.- (I) in a case falling under clause (a), as accords with the statement in equal instalments on the dates applicable in his case under section 21 1; and (II) in a case falling under clause (b), as accords with the estimate in ----------------------------------------------------------------------- 1.652 ---------------------------------------------------------------------- equal instalments on such of the dates applicable in his case as have not expired, or in one sum if only the last of such dates has not expired. (2) Where an assessee who is required to send a statement under clause (a) of subsection (1) estimates on or before the date on which the first instalment of advance tax is due in his case under sub- section (1) of section 211 that, by reason of his current income being likely to be less than the income on which advance tax is payable by him under sub-section (1) or for any other reason, the amount of advance tax computed in the manner laid down in section 209 on the current income would be less than the amount of advance tax payable by him under sub-section (1), he may send to the Income-tax Officer, in lieu of such statement, an estimate of- (i) the current income, and (ii) the advance tax payable by him on the current income calculated in the manner laid down in section 209, and shall pay such amount of advance tax as accords with his estimate in equal instalments on the dates applicable in his case under section 21 1. (3) Where an assessee who has sent a statement under clause (a) of sub-section (1) estimates on or before the date on which the last instalment of advance tax is due in his case that, by reason of his current income being likely to be less than the income on which advance tax is payable by him under sub-section (1) or for any other reason, the amount of advance tax computed in the manner laid down in section 209 on the current income would be less than the amount of advance tax payable by him under sub-section (1), he may, at his option, send to the Income-tax Officer an estimate of- (i) the current income, and (ii) the advance tax payable by him on the current income calculated in the manner laid down in section 209, and shall pay such amount of advance tax as accords with his estimate in equal instalments on such of the dates applicable in his case under section 211 as have not expired, or in one sum if only the last of such dates has not expired. (4) In the case of any assessee who is liable to pay advance tax under sub-section (1) or sub-section (2) or, as the case may be, sub- section (3), if, by reason of the current income being likely to be greater than the income on which the advance tax so payable by him has been computed or for any other reason, the amount of advance tax computed in the manner laid down in section 209 on the current income (which shall be estimated by the assessee) exceeds the amount of advance tax so payable by him by more than 33 1/3 per cent of the latter amount, he shall, on or before the date on which the last instalment of advance tax is payable by him, send to the Income-tax Officer an estimate (i) the current income, and (ii) the advance tax payable by him on the current income calculated in the manner laid down in section 209, and shall pay such amount of advance tax as accords with his estimate on such of the dates applicable in his case under section 211 as have not expired, by instalments which may be revised according to sub- section (5): Provided that in a case where the Commissioner is satisfied that, having regard to the nature of the business carried on by the assessee and the date of expiry of the previous year in respect of such business, it will be difficult for the assessee to furnish the estimate required to be furnished by him in accordance with the provisions of this sub-section on or before the date on which the last instalment of advance tax is due in his case, he may, if the assessee pays the advance tax which he is liable to pay under subsection (1) or sub-section (2) or, as the case may be, sub-section (3) on or before such date, extend the date for furnishing such estimate up to a period of thirty days immediately following the last date of the previous year in respect of that business and, where the date is so extended, the assessee shall pay, on or before the date as so extended, the amount by which the advance tax already paid by him falls short of the advance tax payable in accordance with his estimate: ---------------------------------------------------------------------- 1.653
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