Section 408 — Instalments of Advance Tax and Due Dates | ITA 2025

Section 408 of the Income-tax Act, 2025 corresponds to s. 211 (FA 1987) of the Income-tax Act, 1961, restated within the consolidated advance tax framework of Chapter XIX. STATUTORY ARCHITECTURE Instalment schedule -- non-presumptive…

Section 408 — - INSTALMENTS OF ADVANCE TAX AND DUE DATES

Section 408 of the Income-tax Act, 2025 corresponds to s. 211 (FA 1987) of the Income-tax Act, 1961, restated within the consolidated advance tax framework of Chapter XIX.

Statutory text — Income-tax Act, 2025

408.

(2) The order referred to in sub-section (1) may be passed at any time during the financial year but not later than the last day of February of such financial year and it shall be followed by issuance of notice of demand under section 289.

(3) In sub-section (1), “specified sum” means a sum, being higher of,—

(a) the total income of the latest tax year in respect of which the assessee has been assessed by way of regular assessment; or

(b) total income returned by the assessee in any return of income furnished by him for any subsequent tax year.

(4) If after making of an order by the Assessing Officer under sub-section (1),—

(a) a return of income is furnished by the assessee, under section 263 or in response to a notice under section 268; or

(b) a regular assessment of the income is made in respect of a tax year, later than the assessment referred to in sub-section (1), the Assessing Officer may amend the order referred to in sub-section (1), and may require such assessee to pay advance tax on the specified sum, calculated in the manner laid down in section 405, on or before the due date of each instalment specified in section 408.

(5) The order referred to in sub-section (4) may be passed at any time before the 1st March of that tax year and it shall be followed by issuance of a demand notice under section 289.

(6) In sub-section (4), “specified sum” means the total income declared in the return of income or computed in regular assessment mentioned in sub-section (4)(a) and (b), respectively.

(7) If the notice of demand issued under section 289, as referred in sub-sections (2) and (5), is served after any of the due dates specified in section 408, the appropriate part or, the whole of the amount of the advance tax specified in such notice, shall be payable on or before each of the due date falling after the date of service of the notice of demand.

(8) Where a person, who is served with an order referred to in sub-section (1) or (4), estimates the advance tax payable on his current income to be lower than the amount of advance tax specified in the said order, then, he may send an intimation in the prescribed form to the Assessing Officer to that effect, and pay such advance tax on the current income, calculated in the manner laid down in section 405 as accords with his estimate, at an appropriate percentage thereof on or before the due date of each instalment specified in section 408 falling after the date of such intimation.

(9) Where a person, who is served with an order referred to in sub-section (1) or (4), estimates that advance tax payable on his current income would exceed the amount of advance tax specified in such order or intimated by him under sub-section (8), he shall pay such advance tax on the current income, calculated in the manner laid down in section 405 at the appropriate part or whole of such higher amount of advance tax as accords with his estimate, on or before the due date of the last instalment specified in section 408. Instalments of advance tax and due dates. 408. (1) All the assessees who are liable to pay advance tax, other than the assessee referred to in sub-section (2), shall pay the same on the current income calculated in the manner laid down in section 405 in four instalments during each financial year and the due date of each instalment and the amount of such instal- ment shall be as specified in the Table below:

TABLE Sl. Due date of Amount payable No. instalment

A B C

1. On or before the Not less than 15% of such advance tax. 15th June.

2. On or before the Not less than 45% of such advance tax, as reduced by the 15th September. amount, if any, paid in the earlier instalment.

3. On or before the Not less than 75% of such advance tax, as reduced by the 15th December. amount or amounts, if any, paid in the earlier instalment or instalments.

4. On or before the The whole amount of such advance tax, as reduced by the 15th March. amount or amounts, if any, paid in the earlier instalment or instalments.

(2) An assessee, who declares profits and gains as per the provisions of section 58(2) (Table: Sl. No. 1 or 3), shall pay the whole amount of advance tax on the current income, calculated in the manner laid down in section 405 during each financial year, on or before the 15th March.

(3) Any amount paid by way of advance tax on or before the 31st March, shall be treated as advance tax paid during the financial year ending on that day for all the purposes of this Act. When assessee is deemed to be in default.

STATUTORY ARCHITECTURE

Instalment schedule -- non-presumptive assessees: 15% by 15-Jun, 45% (cumulative) by 15-Sep, 75% (cumulative) by 15-Dec, 100% by 15-Mar. Presumptive (s. 44AD/AE/ADA of 1961, equivalent in 2025): 100% by 15-Mar.

PROVISO FOR UNFORESEEN INCOME

If estimate becomes inaccurate due to unforeseen circumstance (e.g. capital gain in March), the residual instalment must absorb the shortfall; if all instalments paid on time on initial estimate, only s. 425 interest from instalment date for shortfall.

PRACTITIONER PLANNING NOTES

Capital gains are unforeseeable -- s. 425(2) protects: pay tax on CG by next instalment after the gain accrues -- no interest for prior period.
Dividend income similarly protected from FA 2020 onwards.
Presumptive assessees (s. 44AD/ADA): single 15-March instalment; lighter compliance.
Senior citizens not having PGBP: exempt entirely (s. 207(2)).

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. 408 -- Instalments of Advance Tax and Due Dates	s. 211 (FA 1987)