Understanding Advance Tax Thresholds : Clause 404 of the Income Tax Bill, 2025 Vs. Section 208 of the Income-tax Act, 1961

Advance tax liability retained; payable during the tax year when computed tax meets the statutory threshold, preserving continuity.

Clause 404 requires payment of advance tax during the tax year when the amount of tax 'as computed under this Part' for that year reaches the statutory threshold, linking liability to the year of income accrual, incorporating deductions, exemptions and set offs in computation, and using the threshold to exclude small liabilities from procedural advance payments.