CMA Intermediate · Direct and Indirect Taxation · Advance Tax
Which statement correctly reflects section 408 of the Income-tax Act, 2025 about an assessee who declares profits and gains under the presumptive provision covered by section 58(2) (Table Sl. No. 1 or 3)?
Such an assessee pays the whole amount of advance tax in a single payment on or before 15th March. Section 408(2) takes him out of the four-instalment schedule of section 408(1), which applies to all other advance tax payers.
- AHe pays 15% by 15th June and the balance by 15th March
- BHe pays the whole advance tax on or before 15th MarchCorrect
- CHe pays 45% by 15th September and the rest by 15th March
- DHe pays in four instalments of 25% each
Explanation
Section 408(2) provides that such an assessee pays the whole amount of advance tax on or before 15th March of the financial year. The four-instalment schedule in section 408(1) applies to other assessees and does not apply to him.
Did you get it right without looking?
One question tells you little. A timed set on Advance Tax shows your real accuracy, how long you take and where you lose marks.
More Advance Tax questions
- Meenakshi Traders Ltd estimates its current income for the tax year at Rs 40,00,000 and calculates income-tax on it at Rs 10,00,000 at the r…
- Under section 406 of the Income-tax Act, 2025, on what base does an assessee who is liable to pay advance tax compute the advance tax payabl…
- Mr. Ramesh Iyer, a resident aged 45 with business income, has paid the first two instalments of advance tax on his own accord based on an es…
- 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:
- In computing the 'assessed tax' for interest under section 424, which of the following is reduced from the tax on the total income?
- Which individual is NOT liable to pay advance tax on his own accord under the Income-tax Act, 2025 because of section 403(3)?