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CS Executive · Tax Laws and Practice · Direct Tax at a Glance

A person served with an Assessing Officer's order under section 407 of the Income-tax Act, 2025 estimates that advance tax on his current income will be lower than the amount in the order. What may he do?

He may send an intimation in the prescribed form to the Assessing Officer and pay advance tax on his lower estimate of current income on each instalment due date falling after the date of that intimation.

  1. AIgnore the order, since the estimate overrides it automatically
  2. BPay only at the end of the year without any intimation
  3. CApply to the Assessing Officer for the order to be cancelled before any instalment falls due
  4. DSend an intimation in the prescribed form to the Assessing Officer and pay advance tax per his estimate on the remaining instalment due dates after that intimationCorrect

Explanation

Section 407(8) permits a person who estimates lower advance tax on current income to send an intimation in the prescribed form to the Assessing Officer and pay according to his estimate on each instalment due date falling after the intimation. Ignoring the order or skipping intimation is not provided for.

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