I would like to draw your attention on Sec 207 of Income tax Act.
Sec Text is as under:
Sec Text is as under:
207. (1) Tax shall be payable in advance during any financial year, in accordance with the provisions of sections 208 to 219 (both inclusive), in respect of the total income of the assessee which would be chargeable to tax for the assessment year immediately following that financial year, such income being hereafter in this Chapter referred to as "current income".
(2) The provisions of sub-section (1) shall not apply to an individual resident in India, who—
(a) does not have any income chargeable under the head "Profits and gains of business or profession"; and
(b) is of the age of sixty years or more at any time during the previous year.
In Simple words Advance tax liability does not arise on senior citizen who does not have any income under Profit and gains of business and profession.
Now, a question arise:
If an assessee is senior citizen and he is partner in Partnership firm and entitled to get profit from firm which is exempt under 10(2A) and not entitled to any remuneration and interest, Sec 207 apply on him and whether he is not liable to pay advance tax. ??
Answer is NO. He is not liable to pay any advance tax.
Analysis of Section 207:
In Clause 2(a) of sec 207, the word used is 'CHARGEABLE'. But profit of the firm is not chargeable in the hands of partner.
So, if partner is senior citizen, he is NOT LIABLE to pay advance tax.
Sec 207, A critical analysis !!!