Payment of Advance Tax in Pursuance of Order of Assessing Officer

Section 407 — - PAYMENT OF ADVANCE TAX IN PURSUANCE OF ORDER OF ASSESSING OFFICER

Section 407 of the Income-tax Act, 2025 corresponds to s. 210(3)/(4) (FA 1987) of the Income-tax Act, 1961, restated within the consolidated advance tax framework of Chapter XIX.

STATUTORY ARCHITECTURE

Where AO has reason to believe that assessee is liable to pay advance tax, AO may issue notice (similar to demand notice). Notice may be modified by assessee filing his own estimate; final liability is at assessee's risk.

PRACTITIONER PLANNING NOTES

• Rare in practice; AO uses this only when assessee is non-compliant historically.
• Assessee can file own estimate in Form 28A within 7 days of notice; reduces AO's quantum to assessee's estimate.

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).