Section 209 of Income Tax Act "Computation of advance tax"
209. (1) The amount of advance tax payable by an assessee
in the financial year shall, subject to the provisions of
sub-sections (2) and (3), be computed as follows, namely :-
(a) where the calculation is made by the assessee for the
purposes of payment of advance tax under sub-section (1) or
sub-section (2) or sub-section (5) or sub-section (6) of
section 210, he shall first estimate his current income and
income-tax thereon shall be calculated at the rates in force
in the financial year;
(b) where the calculation is made by the Assessing
Officer for the purpose of making an order under sub-section
(3) of section 210, the total income of the latest previous
year in respect of which the assessee has been assessed by
way of regular assessment or the total income returned by
the assessee in any return of income furnished by him for
any subsequent previous year, whichever is higher, shall be
taken and income-tax thereon shall be calculated at the
rates in force in the financial year;
(c) where the calculation is made by the Assessing Officer
for the purpose of making an amended order under sub-section
(4) of section 210, the total income declared in the return
furnished by the assessee for the later previous year, or,
as the case may be, the total income in respect of which the
regular assessment, referred to in that sub-section has been
made, shall be taken and income-tax thereon shall be
calculated at the rates in force in the financial year;
(d) the income-tax calculated under clause (a) or clause (b)
or clause (c) shall, in each case, be reduced by the amount
of income-tax which would be deductible or collectible at
source during the said financial year under any provision of
this Act from any income (as computed before allowing any
deductions admissible under this Act) which has been taken
into account in computing the current income or, as the case
may be, the total income aforesaid; and the amount of
income-tax as so reduced shall be the advance tax payable:
Provided that for computing liability for advance tax,
income-tax calculated under clause (a) or clause (b) or
clause (c) shall not, in each case, be reduced by the
aforesaid amount of income-tax which would be deductible or
collectible at source during the said financial year under
any provision of this Act from any income, if the person
responsible for deducting tax has paid or credited such
income without deduction of tax or it has been received or
debited by the person responsible for collecting tax without
collection of such tax.
(2) Where the Finance Act of the relevant year provides
that, in the case of any class of assessees, net
agricultural income (as defined in that Act) shall be taken
into account for the purposes of computing advance tax,
then, the net agricultural income to be taken into account
in the case of any assessee falling in that class, shall be-
(a) in cases where the Assessing Officer makes an order
under sub-section (3) or sub-section (4) of section 210,-
(i) if the total income of the latest previous year in
respect of which the assessee has been assessed by way of
regular assessment forms the basis of computation of advance
tax payable by him, the net agricultural income which has
been taken into account for the purposes of charging
income-tax for the assessment year relevant to that previous
year; or
(ii) if the total income declared by the assessee for the
later previous year referred to in sub-section (4) of
section 210 forms the basis of computation of advance tax,
the net agricultural income as returned by the assessee in
the return of income for the assessment year relevant to
such later previous year;
(b) in cases where the advance tax is paid by the assessee
on the basis of his estimate of his current income under
sub-section (1) or sub-section (2) or sub-section (5) or
sub-section (6) of section 210, the net agricultural income,
as estimated by him, of the period which would be the
previous year for the immediately following assessment year.
(3) Where the Finance Act of the relevant year specifies any
separate rate or rates for the purposes of computing advance
tax in the case of every Hindu undivided family which has at
least one member whose total income of the previous year
exceeds the maximum amount not chargeable to income-tax in
his case, then, the Assessing Officer shall, for making an
order under sub-section (3) or sub-section (4) of section
210 in the case of any such Hindu undivided family, compute
(subject to the provisions of section 164) the advance tax
at such rate or rates-
(a) in a case where the total income of the latest previous
year in respect of which the Hindu undivided family has been
assessed by way of regular assessment forms the basis of
computation of advance tax, if the total income of any
member of the family for the assessment year relevant to
such latest previous year exceeds the maximum amount not
chargeable to income-tax in his case;
(b) in a case where the total income of the previous year in
respect of which a return of income is furnished by the
Hindu undivided family under section 139 or in response to a
notice under sub-section (1) of section 142 forms the basis
of computation of advance tax, if the total income of any
member of the family for the assessment year relevant to
such previous year exceeds the maximum amount not chargeable
to income-tax in his case.
210. (1) Every person who is liable to pay advance tax
under section 208 (whether or not he has been previously
assessed by way of regular assessment) shall, of his own
accord, pay, on or before each of the due dates specified in
section 211, the appropriate percentage, specified in that
section, of the advance tax on his current income,
calculated in the manner laid down in section 209.
(2) A person who pays any instalment or instalments of
advance tax under sub-section (1), may increase or reduce
the amount of advance tax payable in the remaining
instalment or instalments to accord with his estimate of his
current income and the advance tax payable thereon, and make
payment of the said amount in the remaining instalment or
instalments accordingly.
(3) In the case of a person who has been already assessed by
way of regular assessment in respect of the total income of
any previous year, the Assessing Officer, if he is of
opinion that such person is liable to pay advance tax, may,
at any time during the financial year but not later than the
last day of February, by order in writing, require such
person to pay advance tax calculated in the manner laid down
in section 209, and issue to such person a notice of demand
under section 156 specifying the instalment or instalments
in which such tax is to be paid.
(4) If, after the making of an order by the Assessing
Officer under sub-section (3) and at any time before the 1st
day of March, a return of income is furnished by the
assessee under section 139 or in response to a notice under
sub-section (1) of section 142, or a regular assessment of
the assessee is made in respect of a previous year later
than that referred to in sub-section (3), the Assessing
Officer may make an amended order and issue to such assessee
a notice of demand under section 156 requiring the assessee
to pay, on or before the due date or each of the due dates
specified in section 211 falling after the date of the
amended order, the appropriate percentage, specified in
section 211, of the advance tax computed on the basis of the
total income declared in such return or in respect of which
the regular assessment aforesaid has been made.
(5) A person who is served with an order of the Assessing
Officer under sub-section (3) or an amended order under
sub-section (4) may, if in his estimation the advance tax
payable on his current income would be less than the amount
of the advance tax specified in such order or amended order,
send an intimation in the prescribed form to the Assessing
Officer to that effect and pay such advance tax as accords
with his estimate, calculated in the manner laid down in
section 209, at the appropriate percentage thereof specified
in section 211, on or before the due date or each of the due
dates specified in section 211 falling after the date of
such intimation.
(6) A person who is served with an order of the Assessing
Officer under sub-section (3) or amended order under
sub-section (4) shall, if in his estimation the advance tax
payable on his current income would exceed the amount of
advance tax specified in such order or amended order or
intimated by him under sub-section (5), pay on or before the
due date of the last instalment specified in section 211,
the appropriate part or, as the case may be, the whole of
such higher amount of advance tax as accords with his
estimate, calculated in the manner laid down in section 209.