CHAPTER XVII - COLLECTION AND RECOVERY OF TAX - C.-ADVANCE PAYMENT OF TAX
CHAPTER XVII - COLLECTION AND RECOVERY OF TAX - C.-ADVANCE PAYMENT OF TAX
Section 213 - Commission Receipts (Omitted)
Case Laws & Commentary - Income-tax Act, 1961 (as amended by the Finance Act, 2026) - bharattax.co Treatise
Status: Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1 April 1988.
Finance Act, 2026: No amendment (omitted provision).
Mechanism: Historic: permitted deferment of advance tax attributable to irregular commission receipts; interest for wrongful deferment lay under section 216(b).
Litigation profile: Spent/omitted; narrow, no successor, no direct case law. Candour rule observed in full.
A. SECTION COMMENTARY
Section 213 - "Commission receipts" - was a narrow provision of the pre-1988 regime, omitted by the Direct Tax Laws (Amendment) Act, 1987 (w.e.f. 1 April 1988). It permitted an assessee whose income included commission receipts that were not received at regular intervals to defer the payment of advance tax attributable to that commission income until the commission was actually received, recognising that such income could not realistically be estimated and paid on the ordinary instalment calendar. Section 216(b) correspondingly charged interest where an assessee had "wrongly deferred" the payment of advance tax under section 213.
A relief tied to the old estimate machinery
Section 213 was an exception to the rule that advance tax was payable on the instalment dates: it allowed deferment for irregular commission income. With the abolition of the estimate-and-statement scheme in 1988 and the move to self-computation, the special deferment for commission receipts was discontinued, and the present sections 211 and 234C make no separate provision for it. The provision has no successor.
Status today
Section 213 is spent for assessment years 1989-90 onwards and is reproduced only for completeness. Its sole continuing footprint is the reference to it in section 216(b), which survives for the earlier assessment years to which sections 214 to 217 still apply.
B. STATUTORY POSITION (verbatim text)
Reproduced verbatim from the Income-tax Act, 1961. The Legislature's omission note is set out as printed; the Finance Act, 2026 makes no amendment.
213. [Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.]
C. AUTHORITIES
Section 213 stands omitted with effect from 1 April 1988; it is a narrow, spent provision with no successor and no live litigation. The candour rule is observed in full.
Cluster 1 - Omitted provision: deferment of advance tax on commission
There is no reported merits authority of significance construing section 213; the candour rule is observed.
Position: Section 213 permitted deferment of advance tax on irregular commission receipts; section 216(b) charged interest where such deferment was 'wrongly' claimed. Both belong to the pre-1988 regime.
Candour: No Supreme Court or High Court decision of note turns on the construction of section 213; it is dead law for assessment years 1989-90 onwards and has no successor in the present Chapter.
Central Provinces Manganese Ore Co. Ltd. v. CIT (1986) 160 ITR 961 (SC)
Relevance: Supplies, by analogy, the compensatory and appealable character of the interest (section 216) that a wrongful deferment under section 213 attracted.
Use: Cognate authority only; there is no direct case law on section 213 itself.
Compiled for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Statutory text is reproduced verbatim from the bare Act; case-law citations have been web-verified. Where a section is omitted, spent or substantially unlitigated, the candour rule is observed - the absence of direct authority is stated and only genuinely cognate authority is offered. This digest is for professional reference and is not a substitute for the official report of any judgment.
CHAPTER XVII - COLLECTION AND RECOVERY OF TAX - C.-ADVANCE PAYMENT OF TAX
Section 213 - Commission Receipts (Omitted)
Case Laws & Commentary - Income-tax Act, 1961 (as amended by the Finance Act, 2026) - bharattax.co Treatise
Status: Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1 April 1988.
Finance Act, 2026: No amendment (omitted provision).
Mechanism: Historic: permitted deferment of advance tax attributable to irregular commission receipts; interest for wrongful deferment lay under section 216(b).
Litigation profile: Spent/omitted; narrow, no successor, no direct case law. Candour rule observed in full.
A. SECTION COMMENTARY
Section 213 - "Commission receipts" - was a narrow provision of the pre-1988 regime, omitted by the Direct Tax Laws (Amendment) Act, 1987 (w.e.f. 1 April 1988). It permitted an assessee whose income included commission receipts that were not received at regular intervals to defer the payment of advance tax attributable to that commission income until the commission was actually received, recognising that such income could not realistically be estimated and paid on the ordinary instalment calendar. Section 216(b) correspondingly charged interest where an assessee had "wrongly deferred" the payment of advance tax under section 213.
A relief tied to the old estimate machinery
Section 213 was an exception to the rule that advance tax was payable on the instalment dates: it allowed deferment for irregular commission income. With the abolition of the estimate-and-statement scheme in 1988 and the move to self-computation, the special deferment for commission receipts was discontinued, and the present sections 211 and 234C make no separate provision for it. The provision has no successor.
Status today
Section 213 is spent for assessment years 1989-90 onwards and is reproduced only for completeness. Its sole continuing footprint is the reference to it in section 216(b), which survives for the earlier assessment years to which sections 214 to 217 still apply.
B. STATUTORY POSITION (verbatim text)
Reproduced verbatim from the Income-tax Act, 1961. The Legislature's omission note is set out as printed; the Finance Act, 2026 makes no amendment.
213. [Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.]
C. AUTHORITIES
Section 213 stands omitted with effect from 1 April 1988; it is a narrow, spent provision with no successor and no live litigation. The candour rule is observed in full.
Cluster 1 - Omitted provision: deferment of advance tax on commission
There is no reported merits authority of significance construing section 213; the candour rule is observed.
Status note - section 213 read with section 216(b)
Position: Section 213 permitted deferment of advance tax on irregular commission receipts; section 216(b) charged interest where such deferment was 'wrongly' claimed. Both belong to the pre-1988 regime.
Candour: No Supreme Court or High Court decision of note turns on the construction of section 213; it is dead law for assessment years 1989-90 onwards and has no successor in the present Chapter.
Central Provinces Manganese Ore Co. Ltd. v. CIT (1986) 160 ITR 961 (SC)
Relevance: Supplies, by analogy, the compensatory and appealable character of the interest (section 216) that a wrongful deferment under section 213 attracted.
Use: Cognate authority only; there is no direct case law on section 213 itself.
Compiled for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Statutory text is reproduced verbatim from the bare Act; case-law citations have been web-verified. Where a section is omitted, spent or substantially unlitigated, the candour rule is observed - the absence of direct authority is stated and only genuinely cognate authority is offered. This digest is for professional reference and is not a substitute for the official report of any judgment.