Advance Tax - Condition of liability to pay Advance Tax - Section 208 - Income Tax - Ready Reckoner - Income Tax

Condition of liability to pay Advance Tax [ Section 208 ] Section 208 of the Income Tax Act states that each and every taxpayer or assessee, who s tax liability for the year prior to the assessment year is more than ₹10,000, is liable to pay advance tax. With regards to senior citizens, however, any senior citizen who earns income in the form of rent, deposit interest etc, is saddled with an increased burden of compliance when it comes to advance tax payment. Advance Tax, as computed in accordance with the provisions of this Chapter, shall be payable during a financial year, only when the amount of such advance tax payable by the assessee during that year is ₹10,000 or more. Where the assessee is carrying on a business referred to in section 44AD , on presumptive basis at the rate of 8% of turnover, shall be exempted from payment of advance tax for the income relating to such business.