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

Mr. Ramesh, a resident individual aged 66 years, earns pension and bank interest during tax year 2026-27 and has no income from business or profession. After allowing TDS, his estimated tax liability for the year is Rs 25,000. Which statement is correct about his advance tax obligation?

Mr. Ramesh need not pay advance tax. A resident individual aged 60 or more with no business or professional income is outside the advance tax net, even if net tax exceeds Rs 10,000. He pays the balance as self-assessment tax when filing his return.

  1. AHe must pay advance tax in four instalments because the liability exceeds Rs 10,000
  2. BHe must pay the whole Rs 25,000 on or before 15 March 2027 as a single instalment
  3. CHe is not required to pay advance tax because he is a resident senior citizen with no business or professional incomeCorrect
  4. DHe is required to pay advance tax only if his interest income exceeds Rs 50,000

Explanation

A resident individual of age 60 years or more at any time during the tax year who has no income from business or profession is not liable to pay advance tax. The Rs 10,000 threshold applies only to persons who are otherwise liable. Option A therefore ignores this senior-citizen exemption. The remaining liability is paid as self-assessment tax at the time of filing the return.

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