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

Mrs. Kamala, aged 63 years, is a resident individual. Her income for tax year 2026-27 consists only of pension and bank interest, and she has no income from business or profession. Her estimated tax liability, after considering TDS, is ₹25,000. Which statement about her advance tax liability is correct?

Mrs. Kamala is not liable to pay advance tax. A resident individual who is 60 years or older and has no income from business or profession is exempt from advance tax, so her ₹25,000 balance is paid as self-assessment tax before filing her return.

  1. AShe must pay the full ₹25,000 in four instalments on 15 June, 15 September, 15 December and 15 March
  2. BShe is not liable to pay advance tax, because a resident senior citizen with no business or professional income is exempt from itCorrect
  3. CShe must pay the entire ₹25,000 by 15 March 2027 as a single instalment
  4. DShe is liable only if her tax liability net of TDS is ₹50,000 or more

Explanation

A resident individual aged 60 years or more who has no income from business or profession is not required to pay advance tax, whatever the amount of tax. She will pay the balance as self-assessment tax when filing the return. The other options wrongly apply the general rule, the presumptive-income rule, or an invented threshold.

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