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CMA Intermediate · Direct and Indirect Taxation · Self-Assessment and Intimation

A notice of demand under section 289 for advance tax ordered under section 407 is served on a person after the first two instalment due dates have passed but before the third. How is the advance tax in the notice payable under the Income-tax Act, 2025?

If the demand notice is served after some instalment due dates have passed, the appropriate part or the whole of the advance tax is payable on or before each of the due dates that fall after the date of service.

  1. AThe whole amount on the first due date of the next tax year
  2. BThe appropriate part or whole on or before each due date falling after the date of serviceCorrect
  3. CIn equal parts on all four due dates, with interest for the missed ones
  4. DOnly after a fresh order is passed by the Assessing Officer

Explanation

Section 407(7) states that if the demand notice is served after any due date, the appropriate part or whole of the amount is payable on or before each due date falling after the service date. Hence the missed instalments are not separately re-spread.

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