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CA Intermediate · Taxation · Tax Deduction or Collection at Source and Advance Tax

For tax year 2026-27, four resident taxpayers have each estimated their tax liability after TDS. Which one is NOT required to pay advance tax?

Mrs. Savitri need not pay advance tax. She is a resident senior citizen aged 63 with no business or professional income, and such a person is exempt from advance tax. The others either have net tax of ₹10,000 or more without this exemption, or have business income or are a company.

  1. ARohit, aged 45, a salaried employee, with estimated tax after TDS of ₹12,000
  2. BMrs. Savitri, aged 63, with only pension and bank interest income, and estimated tax after TDS of ₹30,000Correct
  3. CMr. Kulkarni, aged 63, who runs a trading business, with estimated tax after TDS of ₹40,000
  4. DSundaram Traders Private Limited, a company with estimated tax after TDS of ₹50,000

Explanation

Advance tax applies when the tax payable after TDS is ₹10,000 or more. A resident senior citizen (60 years or above) with no income from business or profession is exempt from advance tax. Savitri has only pension and interest income, so she is exempt. Rohit, Mr. Kulkarni and the company all have net liability of at least ₹10,000 and are not covered by that exemption, so they must pay advance tax.

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