CMA Intermediate · Direct and Indirect Taxation · Advance Tax
Under the Income-tax Act, 2025, an assessee (not covered by the special presumptive provision) is liable to pay advance tax of ₹2,00,000 for the year. What is the minimum cumulative amount that must have been paid by 15th September?
The minimum cumulative payment by 15th September is ₹90,000, because section 408(1) requires not less than 45% of the advance tax by that date, reduced by earlier payments. 45% of ₹2,00,000 equals ₹90,000. The 15% and 75% figures belong to other dates.
- A₹30,000
- B₹60,000
- C₹90,000Correct
- D₹1,50,000
Explanation
Under section 408(1), the second instalment requires not less than 45% of the advance tax, as reduced by the amount paid earlier. Cumulatively, 45% of ₹2,00,000 = ₹90,000. ₹30,000 is the 15% due by 15th June, and ₹1,50,000 is the 75% due by 15th December.
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