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CMA Intermediate · Direct and Indirect Taxation · Advance Tax

Which individual is NOT liable to pay advance tax on his own accord under the Income-tax Act, 2025 because of section 403(3)?

A resident aged 62 with only pension and interest income is not liable. Section 403(3) exempts a resident individual who is sixty or older during the tax year and has no business or professional income. Business income, age below 60, or non-residence defeats the exemption.

  1. AA resident aged 62 with only pension and interest incomeCorrect
  2. BA resident aged 62 having business income
  3. CA resident aged 40 with only salary income
  4. DA non-resident aged 65 with interest income

Explanation

Section 403(3) exempts an individual resident in India who has no business or profession income and is aged 60 or more at any time during the tax year. Only the first option meets both conditions. The second has business income, and the third is below 60.

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