Section 406 — Payment of Advance Tax by Assessee on his Own Accord | ITA 2025

Section 406 of the Income-tax Act, 2025 corresponds to s. 210 (FA 1987) of the Income-tax Act, 1961, restated within the consolidated advance tax framework of Chapter XIX. STATUTORY ARCHITECTURE Self-assessment mechanism: assessee…

Section 406 — - PAYMENT OF ADVANCE TAX BY ASSESSEE ON HIS OWN ACCORD

Section 406 of the Income-tax Act, 2025 corresponds to s. 210 (FA 1987) of the Income-tax Act, 1961, restated within the consolidated advance tax framework of Chapter XIX.

Statutory text — Income-tax Act, 2025

(1) Every person, who is liable to pay advance tax under section 404 (whether or not he has been previously assessed by way of regular assessment) shall, on his own accord, pay advance tax on the specified sum, calculated in the manner laid down in section 405, at the appropriate percentage, on or before the due date of each instalment, as specified in section 408.

(2) A person who pays any instalment or instalments of advance tax under sub-sec- tion (1), may increase or reduce the amount of advance tax payable in the remain- ing instalment or instalments to accord with specified sum and the advance tax payable thereon, and make payment of the said tax in the remaining instalment or instalments accordingly.

(3) For the purposes of this section, the expression “specified sum” means current income as estimated by the assessee. Payment of advance tax by assessee in pursuance of order of Assessing Officer.

STATUTORY ARCHITECTURE

Self-assessment mechanism: assessee voluntarily computes and deposits advance tax in 4 instalments at prescribed dates. AO is not a participant unless he intervenes by notice.

PRACTITIONER PLANNING NOTES

Deposit via Challan ITNS-280 (online / TRACES) on instalment due dates.
Late payment in any instalment triggers s. 425 interest at 1% per month (or part thereof).

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).

← All sections (537)Act 2025 hub

INCOME-TAX ACT, 2025	INCOME-TAX ACT, 1961
2025 provision	1961 counterpart
s. 406 -- Payment of Advance Tax by Assessee on his Own Accord	s. 210 (FA 1987)