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

Mr. Ramesh Iyer, aged 66 years, is a resident individual in tax year 2026-27. His only income is pension and bank interest, and he has no income from business or profession. His estimated tax liability for the year, after reducing TDS, is Rs 42,000. Which statement is correct about his advance tax liability?

Mr. Ramesh is not liable to pay advance tax. He is a resident senior citizen aged 60 or more and has no business or professional income, so the Rs 10,000 threshold does not apply to him. He pays the balance as self-assessment tax when filing his return.

  1. AHe must pay the whole Rs 42,000 by 15 March
  2. BHe must pay 45% of Rs 42,000 by 15 September
  3. CHe is not liable to pay advance tax because he is a resident senior citizen with no business or professional incomeCorrect
  4. DHe must pay Rs 42,000 in four equal instalments

Explanation

A resident individual aged 60 years or more who has no income from business or profession is exempt from paying advance tax. This applies even though the tax payable after TDS exceeds Rs 10,000. He settles the balance as self-assessment tax when filing the return. The other options wrongly assume that the liability arises.

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