A person pays advance tax on his own accord under section 406 of the Income-tax Act, 2025. On what income is it computed?
Question and options
A person pays advance tax on his own accord under section 406 of the Income-tax Act, 2025. On what income is it computed?
His income of the preceding tax year, as returned
His income of the current tax year, as he estimates it
His income of the preceding tax year, as assessed
His income of the latest tax year assessed
Answer and explanation
Under sections 403(2) and 406(3), advance tax paid on one's own accord is computed on 'current income', the total income chargeable for the current tax year as estimated by the assessee. The income last assessed or returned is the basis only where the Assessing Officer passes an order under section 407.
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