Computation of advance tax
Computation of advance tax
209. The amount of advance tax payable by an assessee in the financial year shall be computed as follows:—
(a) (i) his total income of the latest previous year in respect of which he has been assessed by way of regular assessment shall first be ascertained;
(ii) the amount of capital gains, if any, included in such total income shall be deducted therefrom, and on the balance, income-tax and super-tax shall be calculated at the rates in force in the financial year;
(iii) the income-tax and super-tax so calculated shall be reduced by the amount of income-tax and super-tax which would be deductible during the said financial year in accordance with the provisions of sections 192 to 195 on any income, included in the said total income;
(iv) the net amount of income-tax and super-tax calculated in accordance with sub-clause (iii) shall, subject to the provisions of clauses (b) and (c), be the advance tax payable;
(b) in cases where under the provisions of section 113, the tax payable by the assessee is to be determined with reference to his total world income, the advance tax payable by him shall be calculated in the manner laid down in that section;
(c) in cases where an estimate is sent by the assessee under sub-section (1) or sub-section (2) or sub-section (3) of section 212, the total income so estimated shall, for the purposes of calculation of tax under this section, be substituted for the total income referred to in clause (a).
Explanation.—If the assessee is a partner of a registered firm and an assessment of the firm has been completed for a previous year later than the latest previous year for which the assessee's assessment has been completed, his share in the income of the firm shall, for the purposes of clauses (a) and (b), be included in his total income on the basis of the said assessment of the firm.
[As amended by the Finance Act, 1962]