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CS Executive · Tax Laws and Practice · Computation of Total Income and Tax Liability of various Entities

Under the Income-tax Act, 2025 (applicable from the June 2027 session), Mr. Raghav Menon, a resident individual aged 63 years during the tax year, has only pension and interest income and no income under the head 'Profits and gains of business or profession'. What is the position regarding his liability to pay advance tax?

Mr. Menon is not liable to pay advance tax. Section 403(3) of the Income-tax Act, 2025 excludes a resident individual aged sixty or more at any time in the tax year who has no business or profession income, and he satisfies both conditions.

  1. AHe is not liable to pay advance tax, as the advance tax provisions do not apply to himCorrect
  2. BHe must pay advance tax only if his tax liability exceeds Rs 10,000
  3. CHe must pay advance tax in a single instalment on 15 March
  4. DHe must pay advance tax in four instalments like other assessees

Explanation

Section 403(3) exempts from advance tax a resident individual who has no business or profession income and is aged sixty years or more at any time during the tax year. Mr. Menon meets both conditions. The option suggesting instalments ignores this exclusion, and the single-instalment rule applies to a different class of assessee.

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