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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), the provisions on payment of advance tax do not apply to a resident individual who satisfies which pair of conditions?

The advance tax provisions do not apply to a resident individual who has no business or profession income and is aged sixty years or more at any time during the tax year. Both conditions must be met together; the age threshold is sixty, not eighty.

  1. AHas no business or profession income and is aged sixty years or more at any time during the tax yearCorrect
  2. BHas no business or profession income and has total income below the basic exemption limit
  3. CIs aged sixty years or more and has only salary income, whatever other income he has
  4. DIs aged eighty years or more and has no capital gains in the tax year

Explanation

The exemption from advance tax covers an individual resident in India who has no income chargeable under the head 'Profits and gains of business or profession' and who is sixty years or more at any time during the tax year. Both conditions must be met. Option C is wrong because the test is the absence of business income, not that salary is the only income, and age eighty is not required.

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