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As per section 208 every person whose estimated tax liability for the year exceeds Rs. 10,000, shall pay his tax in advance in the form of “advance tax”. Thus, any taxpayer whose estimated tax liability for the year exceeds Rs. 10,000 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?

**

Any taxpayer whose estimated tax liability for the year exceeds Rs. 10,000 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.

Senior Citizens not having Business Income Exempt from 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?

**

Any taxpayer whose estimated tax liability for the year exceeds Rs. 10,000 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?

**

Any taxpayer whose estimated tax liability for the year exceeds Rs. 10,000 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?
**

Any taxpayer whose estimated tax liability for the year exceeds Rs. 10,000 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?

**

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.

[As amended by Finance Act, 2022]

(Source- Income Tax India Website , Republished with amendments)

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26 Comments

  1. S.Govindaswamy says:

    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

  2. N.Subramanian says:

    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

  3. Joseph says:

    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?

  4. Mrs D k Raj says:

    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

  5. Arun Kumar Rawat says:

    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.

    1. venkat says:

      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.

    2. BUDDHESWAR K KEDIA says:

      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

  6. Sangeet Patel says:

    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

  7. ANIRBAN PAUL says:

    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

  8. Aloke Ghosh says:

    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

  9. CHANDRA SEKHAR RAO GOPISETTY says:

    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

  10. Rohit Modi says:

    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?

  11. Vijay Khanna says:

    if a person is retired, have pension and also employed in private sector and has rental income. does he have to pay advance tax?

  12. Adhithya says:

    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?

  13. Abhay says:

    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

  14. SAGAR SHARMA says:

    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

  15. s raghavendran says:

    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

  16. ASHOK DALMIA says:

    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?

  17. kishor says:

    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

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