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Each of the following has advance tax of ₹50,000 computed for tax year 2026-27, after allowing for tax deducted at source. Who is not liable to pay advance tax under section 403 of the Income-tax…

Question and options

Each of the following has advance tax of ₹50,000 computed for tax year 2026-27, after allowing for tax deducted at source. Who is not liable to pay advance tax under section 403 of the Income-tax Act, 2025?

  1. A resident aged 62 whose income includes profits of a shop

  2. A non-resident aged 62 whose income is rent and bank interest

  3. A resident aged 62 whose income is pension and bank interest

  4. A resident aged 58 whose income is rent and bank interest

Answer and explanation

Correct answer: C - A resident aged 62 whose income is pension and bank interest

Section 403(3) excuses from advance tax a resident individual aged sixty or more at any time during the tax year who has no income under the head 'Profits and gains of business or profession'. A senior citizen with business profits, a non-resident and a resident under sixty all remain liable once the computed amount reaches ₹10,000 under section 404.

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