Under Sections 207 and 208 of the Income-tax Act, 1961, every taxpayer whose estimated tax liability for the financial year is ₹10,000 or more is generally required to pay advance tax. However, an important exception exists for resident senior citizens. A resident individual who is 60 years of age or above at any time during the relevant financial year is exempt from payment of advance tax, provided such individual does not have any income chargeable under the head “Profits and gains of business or profession.” The illustrations clarify that senior citizens earning only rental or similar non-business income can avail this benefit, whereas individuals below 60 years of age, senior citizens having business income, non-resident senior citizens, partnership firms, HUFs, and corporate taxpayers cannot claim the exemption. The document further reinforces these principles through multiple-choice questions explaining the eligibility conditions and limitations of the relief.
Exemption from payment of advance tax to resident senior citizen
As per section 207, a resident senior citizen (i.e., an individual of the age of 60 years or above) not having any income from business or profession is not liable to pay advance tax. In this part you can gain knowledge about various provisions relating to exemption from payment of advance tax to resident senior citizen.
As per section 208 every person whose estimated tax liability for the year is Rs. 10,000 or more, shall pay his tax in advance in the form of “advance tax”. Thus, any taxpayer whose estimated tax liability for the year is Rs. 10,000 or more has to pay his tax in advance by the due dates prescribed in this regard. However, as per section 207, a resident senior citizen (i.e., an individual of the age of 60 years or above) not having any income from business or profession is not liable to pay advance tax.
In other words, if a person satisfies the following conditions, he will not be liable to pay advance tax:
1) He is an individual
2) He is resident in India as per the Income-tax Act
3) He is of the age of 60 years or above at any time during the year
4) He is not having any income chargeable to tax under the head “Profits and gains of business or profession”
Illustration
Mr. Kapoor (resident and age 65 years) is a retired person, earning rental income of Rs. 40,000 per month. Apart from rental income, he does not have any other source of income. Will he be liable to pay advance tax?
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Any taxpayer whose estimated tax liability for the year is Rs. 10,000 or more has to pay his tax in advance by the due dates prescribed in this regard. However, if a person satisfies the following conditions, he will not be liable to pay advance tax:
1) He is an individual
2) He is resident in India as per the Income-tax Act
3) He is of the age of 60 years or above
4) He is not having any income chargeable to tax under the head “Profits and gains of business or profession”
In this case Mr. Kapoor is a resident as per Income-tax Law. His age is 65 years and he is not having any income chargeable to tax under the head “Profits and gains of business or profession”. Thus, he satisfies all the above conditions and, hence, he will not be liable to pay advance tax.
Illustration
Mr. Sunil (resident and age 56 years) is a retired person, earning rental income of Rs. 40,000 per month. Apart from rental income he does not have any other source of income. Will he be liable to pay advance tax?
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Any taxpayer whose estimated tax liability for the year is Rs. 10,000 or more has to pay tax in advance by the due dates prescribed in this regard. However, if a person satisfies the following conditions, then he will not be liable to pay advance tax:
1) He is an individual
2) He is resident in India as per the Income-tax Act
3) He is of the age of 60 years or above
4) He is not having any income chargeable to tax under the head “Profits and gains of business or profession”
In this case Mr. Sunil is a resident as per Income-tax Law. His age is 56 years and he is not having income chargeable to tax under the head “Profits and gains of business or profession”. He satisfies all the conditions except the age criteria of 60 years and, hence, he will be liable to pay advance tax. In other words, Mr. Sunil is not a senior citizen as per the Income-tax Law and, hence, he is not exempted from payment of advance tax.
Illustration
Mr. Mohan (resident and age 61 years) is a retired person earning rental income of Rs. 40,000 per month. After retirement from his job, he started his own business of provision shop. Will he be liable to pay advance tax?
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Any taxpayer whose estimated tax liability for the year is Rs. 10,000 or more has to pay his tax in advance by the due dates prescribed in this regard. However, if a person satisfies the following conditions, then he will not be liable to pay advance tax:
1) He is an individual,
2) He is resident in India as per the Income-tax Act
3) He is of the age of 60 years or above
4) He is not having any income chargeable to tax under the head “Profits and gains of business or profession”
In this case Mr. Mohan is a resident as per Income-tax Law. His age is 61 years and he is having income chargeable to tax under the head “Profits and gains of business or profession”. He satisfies all the conditions except the business/profession income criteria. Hence, he will be liable to pay advance tax. In other words, Mr. Mohan will be liable to pay advance tax because he is having income chargeable to tax under the head “Profits and gains of business or profession”.
Illustration
Mr. Raja (a non-resident and age 63 years) is a retired person, earning rental income of Rs. 40,000 per month from a property located in Delhi. He is residing in Canada. Apart from rental income, he does not have any other source of income. Will he be liable to pay advance tax in India?
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Any taxpayer whose estimated tax liability for the year is Rs. 10,000 or more has to pay his tax in advance by the due dates prescribed in this regard. However, if a person satisfies the following conditions, he will not be liable to pay advance tax:
1) He is an individual
2) He is resident in India as per the Income-tax Act
3) He is of the age of 60 years or above
4) He is not having any income chargeable to tax under the head “Profits and gains of business or profession”
The exemption from payment of advance tax is available to a resident individual who is of the age of 60 years or above and who does not have income chargeable to tax under the head “Profits and gains of business or profession”. In this case, Mr. Raja is a non- resident as per Income-tax Law, and, hence, he cannot claim the benefit of exemption from payment of advance tax. In other words, Mr. Raja will be liable to pay advance tax.
Illustration
Essem Enterprises, a partnership firm, owns a property in Delhi. The property is given on rent of Rs. 40,000 per month. Apart from rental income, the firm is not having any source of income. Will the firm be liable to pay advance tax?
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The exemption from payment of advance tax is available to a resident individual who is of the age of 60 years or above and who does not have income chargeable to tax under the head “Profits and gains of business or profession”. In this case, the taxpayer is a partnership firm and, hence, the exemption will not apply to it, thus, the firm will be liable to pay advance tax.
MCQ ON EXEMPTION FROM PAYMENT OF ADVANCE TAX TO RESIDENT SENIOR CITIZEN
Q1. As per section 207, not having any income from business or profession is not liable to pay advance tax.
(a) A resident individual who is of the age of below 60 years
(b) A resident HUF
(c) A non-resident individual
(d) A resident senior citizen (i.e., an individual of the age of 60 years or above)
Correct answer : (d)
Justification of correct answer :
As per section 207, a resident senior citizen (i.e., an individual of the age of 60 years or above) not having any income from business or profession is not liable to pay advance tax.
Thus, option (d) is the correct option.
Q2. As per section 207, a resident individual who is of the age of below 60 years not having any income from business or profession is not liable to pay advance tax.
(a) True (b) False
Correct answer : (b)
Justification of correct answer :
As per section 207, a resident senior citizen (i.e., an individual of the age of 60 years or above) not having any income from business or profession is not liable to pay advance tax.
Thus, the statement given in the question is false and hence, option (b) is the correct option.
Q3. As per section 208, every person whose estimated tax liability for the year is or more, shall pay his tax in advance in the form of “advance tax”.
(a) Rs. 5,000 (b) Rs. 10,000
(c) Rs. 25,000 (d) Rs. 50,000
Correct answer : (b)
Justification of correct answer :
As per section 208, every person whose estimated tax liability for the year is Rs. 10,000 or more, shall pay his tax in advance in the form of “advance tax”.
Thus, option (b) is the correct option.
Q4. Exemption from payment of advance tax under section 207 is also available to anon- resident senior citizen (i.e., an individual of the age of 60 years or above) not having any income from business or profession.
(a) True (b) False
Correct answer : (b)
Justification of correct answer :
As per section 207, a resident senior citizen (i.e., an individual of the age of 60 years or above) not having any income from business or profession is not liable to pay advance tax. In other words, exemption under section 207 is not available to any taxpayer who is a non-resident or to a resident who is not a resident senior citizen not having income from business or profession.
Thus, the statement given in the question is false and hence option (b) is the correct option.
Q5. A resident partnership firm not having income from business or profession can claim exemption from payment of advance tax under section 207.
(a) True (b) False
Correct answer : (b)
Justification of correct answer :
As per section 207, a resident senior citizen (i.e., an individual of the age of 60 years or above) not having any income from business or profession is not liable to pay advance tax. In other words, a resident partnership firm not having income from business or profession cannot claim exemption from payment of advance tax under section 207.
Thus, the statement given in the question is false and hence, option (b) is the correct option.
Q6. A resident corporate taxpayer cannot claim exemption from payment of advance tax under section 207. However, a resident HUF can claim such exemption.
(a) True (b) False
Correct answer : (b)
Justification of correct answer :
As per section 207, a resident senior citizen (i.e., an individual of the age of 60 years or above) not having any income from business or profession is not liable to pay advance tax. In other words, a taxpayer who is not a resident senior citizen (i.e., an individual of the age of 60 years or above) not having any income from business or profession cannot claim exemption under section 207.
Thus, the statement given in the question is false and hence, option (b) is the correct option.
Q7. A resident individual who is of the age of 60 years not having any income chargeable to tax under the head “Profits and gains of business or profession” can claim exemption under section 207.
(a) True (b) False
Correct answer : (a)
Justification of correct answer :
A resident individual who is of the age of 60 years or above at any time during the year and is not having any income chargeable to tax under the head “Profits and gains of business or profession” is not liable to pay advance tax.
Thus, the statement given in the question is true and hence, option (a) is the correct option.
Q8. A resident individual who is of the age of 60 years or above as/at_________not having any income chargeable to tax under the head “Profits and gains of business or profession” can claim exemption under section 207.
(a) On the first day of the financial year (b) On the last day of the financial year
(c) At any time during the year (d) On 30th September of the financial year
Correct answer : (c)
Justification of correct answer :
A resident individual who is of the age of 60 years or above at any time during the year not having any income chargeable to tax under the head “Profits and gains of business or profession” can claim exemption under section 207.
Thus, option (c) is the correct option.
Q9. As per section 207, only a resident senior citizen being a female of the age of 60 years or above not having any income from business or profession is not liable to pay advance tax.
(a) True (b) False
Correct answer : (b)
Justification of correct answer :
As per section 207, a resident senior citizen (whether male or female of the age of 60 years or above) not having any income from business or profession is not liable to pay advance tax.
Thus, the statement given in the question is false and hence, option (b) is the correct option.
Q10. A resident senior citizen (i.e., an individual of the age of 60 years or above) engaged in the business of plying, hiring or leasing of goods carriages and adopting the provisions of section 44AE can claim the benefit of exemption available under section 207.
(a) True (b) False
Correct answer : (b)
Justification of correct answer :
As per section 207, a resident senior citizen (i.e., an individual of the age of 60 years or above) not having any income from business or profession is not liable to pay advance tax. In other words, a resident senior citizen having income from business or profession cannot claim the benefit of exemption available under section 207.
Thus, the statement given in the question is false and hence, option (b) is the correct option.
Above document contains the provisions of the Income-tax Act, 1961, as amended by the Finance Act, 2026.
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Disclaimer: The contents of this document are for information purposes only. This aims to enable public to have a quick and an easy access to information and do not purport to be legal documents. Viewers are advised to verify the content from Government Acts/Rules/Notifications etc.
(Republished with amendments)
let us consider a super senior citizen, 90 years old whose income after deductions under 80 TTB, 80C, 80l, and 80L is about Rs 5.5 Lakhs and his tax liability is about Rs 10000. He/She not pay advance tax. However as He/She can not submit Form 15H Banks, Post Office etc will deduct more than Rs 50000 as T.D.S, which is nothing but tax paid in advance.
No Tax should be deducted in advance for deposits of senior/super senior citizens.
Govindaswamy
I am aged 76. Apart from pension I am getting income from share investments by way trading and also dividends and my tax liability comes to more than Rs. 10000 . Am I to pay advancetax
I understand that for a senior citizen who has no income from Business or Profession, and say a tax of Rs.1.50 lakhs:
a. If Rs 1 lakh tax is paid on or before 31st July 2021, then this will be treated as advance tax, and only if the balance tax (in this case Rs. 50,000) is Rs 1 lakh or more, penal interest provisions would be attracted. Is this right?
I am senior citizen having only salary pension & FD interest. i don’t have to pay advanceTax & i have to file IT Returns only in july2021
When should I pay IT. Is it before 31.03.2021 or 31.07 2021
It is good to pay Income Tax by 30th June, so you can file return on or before 31st July.
A sr citizen who has not any professional income is not supposed to pay advance tax. Please clarify whether self assessment tax is to be paid at the time of filing of return ie upto 31/11/2020 or is there any other prior date for paying self assessment tax.
I am super senior citizen. Last year AY 2020-21 the last date of submission of ITR was postponed to 31 Dec 2020. I though I can pay the tax payable also late and paid in September and submitted return in Sept 2020. However the IT department charged penalty for late payment. I do not know whether this is correct. can Taxguru elucidate the position.
IN AY 2021-22 incometax return to be filed by 30/09/2021. I am senior citizen having income from interest & capital gains from mutual funds.
Can I pay self assessment tax bu 15/09/2021?
Thanks
BUDDHESWAR KEDIA
I would like to know how while making payment of advance tax for senior citizen only income from bussiness is to be considered or the entire income from all other sources is to be taken
Income from all sources to be considered.
I shall retire from Railway on 31/1/2021. Rs.78000 will be deducted from my Jan 2021 salary for join in Railway Employee’s Liberalised Health Scheme to get lifetime treatment. May I get Tax benefit of Rs.50000 U/S 80D or for any other amount as this is a CGHS in nature?
Am I liable to pay advanced tax as I shall earn rental income beside my Railway pen
can a Sr Ctzn, not having business or professional income submit 15 H tax exemption forms even if his int income exceeds Rs 5 or 10 lakh, saying that he would pay self assessment tax
I am retired person. my age is 61. No pension. I invest my retirement benefits VPF,Grtituty etc in Bank Fixed deposit and get Rs.610000/- per annum. Shall I pay advance tax? I submit for H in bank . iam self assessment . Can I pay income tax at the time of filling returns .Please advice . Because last date is 15.9.18
Can you please clarify if I am RNOR, (Resident but not Ordinary Resident) and a senior citizen and no income other than Interest on NRE FD and SCSS and GOI Bonds on which tax implication is more than INR 10,000, Am I exempted from paying advance tax?
if a person is retired, have pension and also employed in private sector and has rental income. does he have to pay advance tax?
A senior citizen is having share of profits from firm as he is a partner. Since share of profits from firm is exempt in the hands of the partner, even though the amount is chargeable to tax under head “PGBP”, it is exempt u/s 10(2A) meaning business income is eventually NIL.
In this circumstance, is advance tax liable considering Other taxable income is more than 10000?
I have a query that if a senior citizen is getting a salary from teaching in Govt shool,
Will his employer liable to deduct TDS on his salary or will he be expmoted as per Section 208/207
Total taxable Income may 8 -10 lakh per annum
“He is not having any income chargeable to tax under the head “Profits and gains of business or profession”
Needed Clarity on the same, Please reveiw and suggest
I am a senior citizen, 66 years old. I am a resident of India. I am not having any income from Business or Profession. I am only having income from interest on FDs.etc.from Banks. In case my total income per year is Rs.7,00,000.00. Can I ask the Banks to not deduct TDS by Form-G/H as I am not liable to pay advance tax. Please guide me. Please advise and guide me on my mail ID
If Senior Citizen has loss from business still he has to pay advance tax??
sir,
iam senior citizen drawing monthly pension interest from fixed deposits.am i required to pay advance income tax by 31st march every year? please clarify.
thanking you,
yours faithfully
s raghavendran
Can senior citizens above age 80 years pay advance tax 0nce only by 15 march
WILL YOU KINDLY CLARIFY IF A SENIOR CITIZEN NEEDS TO PAY ADVANCE TAX OF SAY 1 CRORE ON CAPITAL GAINS INCURRED DURING THE FINANCIAL YEAR 2012-13 , IS HE ALSO EXEMPTED FROM PAYMENT OF ADVANCE TAX DURING THE FY 2012-13?
Does investment in equity & short term capital gain is considered as income chargeable under the head “Profits and gains of business or profession”,.
Means any sr. citizen have income source as interest & STCG will be covered in this?
regards