CMA Intermediate · Direct and Indirect Taxation · Advance Tax
The Assessing Officer passes an order under section 407(1) requiring Rohit to pay advance tax of ₹1,00,000 on the specified sum. The demand notice is served on 20th October. Under the Act, when is the amount payable?
The appropriate part or the whole amount is payable on or before each due date falling after service of the notice, which here means 15th December and 15th March. Section 407(7) adjusts the instalments when notice is served after earlier due dates have passed.
- AEntire amount by 15th June of the next year
- BOnly on or before 15th March, since the order is delayed
- CThe appropriate part or whole on or before each due date falling after service, i.e., 15th December and 15th MarchCorrect
- DWithin 30 days from service, regardless of due dates
Explanation
Section 407(7) says that if the demand notice is served after any due date in section 408, the appropriate part or whole of the amount is payable on or before each due date falling after service. After 20th October the remaining due dates are 15th December and 15th March.
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