Conditions of Liability to Pay Advance Tax

Section 404 — - CONDITIONS OF LIABILITY TO PAY ADVANCE TAX

Section 404 of the Income-tax Act, 2025 corresponds to s. 208 (FA 1987) of the Income-tax Act, 1961, restated within the consolidated advance tax framework of Chapter XIX.

STATUTORY ARCHITECTURE

Section 404 specifies the conditional trigger: advance tax payable only if amount of such tax payable (computed under s. 405) for the FY exceeds INR 10,000. Below threshold, no obligation; above, full instalment regime engages.

PRACTITIONER PLANNING NOTES

• Compute advance tax obligation at the start of each instalment date based on then-projected income.

CROSS-REFERENCES

• s. 403-411 (advance tax framework, this Sub-Chapter).
• s. 425 (interest for deferment of advance tax).
• s. 423 / 424 (interest for default in return / advance tax).