Applicability for payment of Advance Tax - Section 207 - Income Tax - Ready Reckoner - Income Tax

Applicability for payment of Advance Tax - Section 207 As per the various provisions of advance Tax ( sections 208 to 219 ), tax shall be payable in advance during the financial year in respect of the total income of the assessee which would be chargeable to tax for the assessment year immediately following that financial year. Such total income shall be referred to as Current income in this Chapter. Senior citizen not required to pay advance tax [ Section 207(2) ] If a person satisfies the following conditions, he will not be liable to pay advance tax: He is an individual He is resident in India as per the Income-tax Act He is of the age of 60 years or above at any time during the year He is not having any income chargeable to tax under the head Profits and gains of business or profession . MEANING OF CURRENT INCOME AS MENTIONED IN ADVANCE TAX Current Income will include all items of income. It includes capital gains (both long term and short term), winnings from lotteries, crossword puzzles, etc. For computation of advance tax on the current non-agricultural income, even agricultural income will be included for rate purposes, wherever as per provisions of the Income-tax Act, it is required to be so included. Advance tax in respect of an assessment year is payable in the financial year immediately preceding the assessment year. Advance tax shall be calculated by estimating the current year income and then applying the tax rates in force. TDS/TCS and MAT credit shall be deducted to arrive at advance tax liability. An assessee is required to pay advance tax if his liability for advance tax is Rs. 10,000 or more. General Information INCOME INCLUDES -- All income (including capital gains, winnings from lotteries, crossword puzzles, etc.).