Income Tax
Advance Tax Computation

Types of Advance Tax

Advance tax is paid either

  1. By Assessee himself (as per different due dates)
  2. By Assessee, on notice of Assessing Officer (AO)

Advance tax on notice of Assessing Officer


AO can direct Assessee to pay Advance tax if

  • Assessee has already been assessed by regular assessment of any previous year

(2) AO is satisfied that Assessee is liable to pay advance tax

(3) Such notice should be sent latest by last day of February of such financial year.  


How does AO compute Income for purpose of Advance Tax?

1.AO  will take current  income as higher of

      (a) Total income of latest financial year in which regular assessment made.

      (b) Any year subsequent to the year in which regular assessment made


2. AO can amend the order for advance tax in case

      (a) Regular assessment made of any subsequent financial year

      (b) Return filed by Assessee under section 139/142 (1).


3. If the Assessee feels that his income is less than the AO estimated

(a) He can submit prescribed form to AO (from 28(A))

(b) In this case he will be liable to pay advance tax on this lower income as estimated by him.  

(c) In this case if Assessee given a wrong estimate then he will be deemed to be Assessee in Default and penalty can be charged on him under section 221.


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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.