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

Meera Gupta, a resident individual, runs a small retail business and has opted for the presumptive scheme for eligible businesses for tax year 2026-27. Her estimated tax liability for the year is ₹60,000 and no TDS applies to her receipts. Which statement about her advance tax is correct?

Meera may pay the whole ₹60,000 as a single instalment on or before 15 March 2027. A presumptive business taxpayer is not required to follow the four-instalment schedule, and since her liability exceeds ₹10,000 she cannot defer payment to the return stage without interest.

  1. AShe must pay ₹9,000 by 15 June and the balance in later instalments
  2. BShe must pay 75% by 15 December 2026 and the balance by 15 March 2027
  3. CShe may pay the entire ₹60,000 on or before 15 March 2027Correct
  4. DShe need not pay advance tax and may pay the whole tax with her return

Explanation

An eligible assessee under the presumptive scheme for business pays the entire advance tax in one instalment, on or before 15 March of the tax year, instead of four instalments. Her liability is ₹60,000, which exceeds ₹10,000, so advance tax is applicable. The instalment option with 15 June and 15 December dates applies to other taxpayers. Paying only with the return would attract interest for default in advance tax.

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