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

Raghunath, a resident individual aged 66, earns only 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 ₹38,000. Which statement about his advance tax obligation is correct?

Raghunath need not pay advance tax. A resident senior citizen aged 60 or above with no business or professional income is outside the advance tax net, even where the tax after TDS exceeds ₹10,000. He can settle the balance as self-assessment tax when filing his return.

  1. AHe must pay advance tax in four instalments because the liability exceeds ₹10,000
  2. BHe is not liable to pay advance tax because he is a resident senior citizen with no business or professional incomeCorrect
  3. CHe must pay the entire ₹38,000 by 15 March 2027 as a single instalment
  4. DHe must pay 45% of the liability by 15 September 2026 and the rest by 15 March 2027

Explanation

A resident individual aged 60 or more who has no income chargeable under the head business or profession is exempt from advance tax, whatever the amount of liability. The ₹10,000 threshold would matter only for persons who are not exempt this way. The tax can be paid as self-assessment tax before filing the return.

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