Site navigation

Consider these statements about advance tax under the Income-tax Act, 2025: (i) a person liable under section 404 must pay it on his own accord, even if never assessed before; (ii) the Assessing…

Question and options

Consider these statements about advance tax under the Income-tax Act, 2025: (i) a person liable under section 404 must pay it on his own accord, even if never assessed before; (ii) the Assessing Officer may, by order, require a person already assessed to pay it; (iii) advance tax becomes payable only once the Assessing Officer issues a demand. Which are correct?

  1. (ii) only

  2. (iii) only

  3. (i) and (iii) only

  4. (i) and (ii) only

Answer and explanation

Correct answer: D - (i) and (ii) only

Section 406(1) requires every person liable under section 404 to pay advance tax on his own accord, whether or not previously assessed, on his own estimate of current income. Section 407(1) also lets the Assessing Officer, by written order, require a person already assessed to pay advance tax. No demand is needed before the duty to pay arises, so statement (iii) is wrong.

Practice for these exams

Related exam syllabi

More solved explanations in Income tax - assessment, appeals, penalties & prosecution