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CMA Intermediate · Direct and Indirect Taxation · Advance Tax

Under section 408(3) of the Income-tax Act, 2025, an advance tax payment made on 28th March 2027 will be treated as advance tax paid:

The payment is treated as advance tax paid during the financial year ending 31st March 2027. Section 408(3) provides that any advance tax paid on or before 31st March counts for the year ending on that day for all purposes of the Act.

  1. Aduring the financial year ending on 31st March 2027Correct
  2. Bduring the next financial year beginning 1st April 2027
  3. Cas self-assessment tax only
  4. Das advance tax only if paid on or before 15th March

Explanation

Section 408(3) treats any amount paid by way of advance tax on or before 31st March as advance tax paid during the financial year ending on that day for all purposes of the Act. A payment on 28th March 2027 therefore counts for the year ending 31st March 2027, though it falls after the 15th March due date.

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