Loading...

Top
Help
×

By creating an account you can:

Logo TaxTMI
Call Us / Help / Feedback

Contact Us At :

E-mail: [email protected]

Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters 0/2000
Make Most of Text Search
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
  6. Text Search
  7. The system will try to fetch results that contains ALL your words.
  8. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
  9. Text Search
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
❮❮ Hide
Default View
Expand ❯❯
Close ✕
🔎 TMI Notes - Adv. Search
TEXT SEARCH:

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In:
Main Text + AI Text
  • Main Text
  • Main Text + AI Text
  • AI Text
Law:
---- All Laws----
  • ---- All Laws----
  • Benami Property
  • Bill
  • Central Excise
  • Companies Law
  • Customs
  • DGFT
  • FEMA
  • GST
  • GST - States
  • IBC
  • Income Tax
  • Indian Laws
  • Money Laundering
  • SEBI
  • SEZ
  • Service Tax
  • VAT / Sales Tax
Types:
---- All Types ----
  • ---- All Types ----
  • Act Rules
  • Case Laws
  • Circulars
  • Manuals
  • News
  • Notifications
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
Relevance Default Date
    Case Laws Benami Property
    Benami Attachments and the Collapse of Precedent: Tribunal's Response to the Ganpati Dealcom Review
    Case Laws Central Excise
    Dead Credits and Transitional Limits: CESTAT Larger Bench on Refund of Education and Krishi Kalyan C...
    Case Laws Money Laundering
    Judicially Crafted SOP: Kerala High Court on Bank Powers to Freeze Suspicious Accounts under PMLA
    Case Laws Income Tax
    Computer-Aided Scrutiny: Invalid Scrutiny Notices and CBDT Instructions: ITAT Kolkata Quashes Assess...
    Case Laws Customs
    High Speed Diesel or Base Oil? Scientific Evidence, Expert Opinion and Tariff Interpretation under C...
    Case Laws Income Tax
    Characterisation of Aircraft Leases under the India-Ireland DTAA: Operating Lease, Financial Lease, ...
    Case Laws Money Laundering
    Cognizance, Custody and Complaints under PMLA: The Supreme Court's Integration of BNSS and CrPC Norm...
    Case Laws Income Tax
    Rental of Aircraft in International Traffic: Dry Leasing and Permanent Establishment: Article 8(1) o...
    Case Laws Income Tax
    MLI, PPT and Aircraft Leasing: Operating vs. Finance Lease and PE Risk in Aircraft Leasing: Reassess...
    E-Way Bills, Expiry and Intent (Mens Rea): Reassessing GST Penalties: Reading Sections 129 and 130 i...
    Case Laws Money Laundering
    Arrest, Presumption, and Proceeds of Crime: A Holistic Analysis of PMLA Bail Jurisprudence in a GST-...
    Case Laws Customs
    Classification of Wheel Loaders under Heading 8429: From Practice to Principle: Mining Use, HSN Note...
    Case Laws Income Tax
    Limits of Revisional Jurisdiction: Adequate Enquiry, Limited Scrutiny, and the Proper Use of Section...
    Case Laws Income Tax
    Maximum Marginal Rate and Surcharge for Discretionary Trusts: ITAT Special Bench Clarifies Slab-Base...
    Case Laws Customs
    Classification of Quicklime under the Customs Tariff: CESTAT Bangalore's Reaffirmation of HSN-Based ...
    Case Laws Income Tax
    Validity of Reassessment Notices Post-Ashish Agarwal and TOLA: Limitation and Sanction u/ss 149 and ...
    Case Laws Customs
    Seizure, Provisional Release and Limitation: Supreme Court on the Interplay of Sections 110(2), 110A...
    Case Laws Income Tax
    Prima Facie Adjustments v. Substantive Adjudication: Procedural Boundaries in Return Processing (CPC...
    Survey, Unaccounted Stock (Eye-Estimates) and the Limits of Section 130: Statutory Primacy of Sectio...
    Input Tax Credit Abuse (ITC Fraud) and Judicial Review: Delhi High Court on Natural Justice, RUDs an...
❯❯
Maximize Maximize Maximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

+

Are you sure you want to delete "My most important" ?

NOTE:

Notes
Showing Results for :
Reset Filters
Results Found:
Show All Summaries Hide All Summaries
Case Laws Benami Property
Show AI Summary
Benami property orders grounded on a recalled precedent must be re-adjudicated without treating that precedent as binding.
The Tribunal held that where an adjudicatory order under the PBPTA is substantially founded on a Supreme Court judgment that has been recalled on review, that order cannot stand; the correct remedial course is to set aside and remit for de novo adjudication so the Adjudicating Authority may re-examine evidence and apply the law without treating the recalled Ganpati Dealcom decision as binding on the question of the amendments' temporal applicability.
Case Laws Central Excise
Show AI Summary
Transition of cess credits: abolished cess balances are dead credits, not eligible for GST transition or cash refunds.
Unutilised Education Cess, Secondary & Higher Education Cess and Krishi Kalyan Cess balances whose utilisation was limited to the same cess and whose levies were abolished became dead CENVAT credits; they were not eligible for transition under the exhaustive list in Section 140 and its Explanations, and Section 142(3) only prescribes payment in cash where refund is otherwise due under existing law, not a new substantive right to refund or a means to evade pre GST limitation.
Case Laws Money Laundering
Show AI Summary
Bank account freezes: limited temporary freezes permitted on reasonable suspicion, with strict notice, review and three month cap.
A narrow implied power exists for banks to impose a temporary debit freeze without prior notice when there are reasonable grounds to suspect use of an account for money laundering or cyber fraud; this power must be exercised with same day communication to the accountholder, mandatory intimation to investigative authorities with proof, a one week window for accountholder explanation and bank decision, and a maximum three month continuation absent directions from competent authorities, after which the freeze must be lifted and access to the credit balance restored.
Case Laws Income Tax
Show AI Summary
Section 143(2) notices not following CBDT formats invalidate ensuing scrutiny assessments; computer generation does not cure the defect.
A scrutiny notice that does not conform to CBDT-prescribed formats-specifically by failing to specify whether selection is for limited, complete, or compulsory manual scrutiny-is not a valid jurisdictional notice; non compliance with the binding CBDT Instruction vitiates the Assessing Officer's authority and renders any consequent scrutiny assessment void ab initio. Computer generation of the notice does not cure the defect. A pure legal challenge to such notice validity may be admitted at the appellate stage where no new facts are required.
Case Laws Customs
Show AI Summary
Imported petroleum product: partial testing and non categorical reports cannot sustain classification as high speed diesel under tariff rules.
Classification requires evidence addressing all IS 1460:2005 parameters or, where full conformity is lacking, a Rule 4 "most akin" analysis showing closest resemblance among candidate headings based on reliable, reasoned laboratory results and expert opinion; partial testing or non categorical reports do not suffice to support penal or confiscatory measures.
Case Laws Income Tax
Show AI Summary
Aircraft leases with no purchase option and retained lessor title remain operating leases, not interest-bearing financings.
Where aircraft lease documentation preserves legal title in the lessor, imposes a return obligation without any purchase option or residual-payment mechanism, and regulatory treatment aligns with operating-lease norms, the arrangement constitutes an operating lease; absent an enforceable transfer of ownership to the lessee at term end, lease rentals cannot be re-characterised as interest for treaty purposes merely because of lease tenure or finance-like pricing.
Case Laws Money Laundering
Show AI Summary
PMLA complaints: BNSS imposes mandatory pre-cognizance hearing, affecting cognizance and arrest powers in money laundering cases.
PMLA complaints are now governed by the general complaint-cognizance framework and, for complaints filed after BNSS commencement, by the corresponding BNSS provisions; the BNSS proviso requiring that the accused be given an opportunity to be heard before cognizance is mandatory, and failure to provide that opportunity invalidates the cognizance order. A scheduled predicate offence is a condition precedent to the existence of proceeds of crime and hence to PMLA liability, and once cognizance is taken, enforcement agencies' unilateral arrest powers against named accused are curtailed pending court-authorised custody.
Case Laws Income Tax
Show AI Summary
Aircraft leasing: treaty text treats rental income as taxable in the lessor's residence when aircraft form part of international traffic.
Whether leased aircraft create a fixed place Permanent Establishment depends on the disposal test: operational control and the right to use and conduct business from the place must vest in the enterprise; mere ownership and protective inspection or repossession rights do not suffice. Profit attribution to any alleged PE requires a FAR based arm's length analysis under Article 7(2), and Article 8(1)'s express inclusion of "operation or rental" covers rental income from aircraft forming part of a fleet used in international traffic, allocating taxing rights to the State of residence.
Case Laws Income Tax
Show AI Summary
Aircraft leasing: MLI PPT not applicable without section 90(1) notification; operating leases and Article 8(1) allocate rental tax to Ireland.
The Tribunal ruled that Articles 6-7 of the MLI cannot be applied against the India-Ireland DTAA without a specific section 90(1) notification; alternatively, the Revenue failed to show PPT-based abuse. Contractual and regulatory analysis classified the transactions as operating leases; no fixed place PE existed in India; and Article 8(1) allocates taxing rights on rental of aircraft in international traffic to Ireland.
Case Laws GST
Show AI Summary
E-way bill expiry alone cannot prove intent to evade tax; penalties require material indicating actual evasion.
Expiry or non-generation of an e-way bill, by itself, does not establish intent to evade tax; penal action for movement in contravention requires material indicating diversion, mis-declaration or other indicia of tax risk. Where genuine invoices, correct particulars and evidence explaining delay exist and any fresh e-way bill is produced prior to final orders, authorities must record reasoned findings on intent; absent such material, detention, seizure and confiscation regime cannot be sustained and such misapplication is reviewable on certiorari.
Case Laws Money Laundering
Show AI Summary
PMLA bail in GST-ITC syndicate case: High Court upholds arrest validity and denies bail under twin conditions.
The High Court held the PMLA arrest valid because the authorised officer recorded written reasons to believe and furnished written grounds of arrest; it found prima facie involvement in money laundering from corroborated banking, corporate and recorded-statement evidence establishing foundational facts of proceeds of crime; the statutory presumption applied and shifted the burden to the accused; and the mandatory twin bail conditions were not satisfied given the alleged magnitude, sophistication and continuing nature of the GST-ITC fraud, so regular bail was refused.
Case Laws Customs
Show AI Summary
Wheel loaders classification: tribunal finds front end shovel loaders heading applies; no penalties without mala fide intent.
Self propelled wheeled machines with front mounted buckets are classifiable under TI 8429 5100 as front end shovel loaders regardless of mining use; invocation of the extended period u/s 28(4) requires evidence of collusion, wilful mis statement or suppression with intent to evade duty, and long standing departmental acceptance plus full disclosure negates mala fides; misclassification or wrong exemption claim alone does not justify confiscation u/s 111(m) or penalties u/ss 114A/114AA without proof of knowingly false description or fraudulent conduct.
Case Laws Income Tax
Show AI Summary
Income tax revisional jurisdiction: if AO investigated, PCIT must decide merits or record specific investigative failure, not remand.
Where the Assessing Officer has conducted enquiries and accepted the assessee's explanation, the revisional authority cannot remand the assessment on a generic claim of inadequate enquiry; it must either record an abject failure to investigate with specific findings or decide the issue on merits in the revisional order and demonstrate error and prejudice.
Case Laws Income Tax
Show AI Summary
Discretionary trusts taxed at maximum marginal rate must have surcharge computed under slab and threshold rules, not automatically at top rate.
For private discretionary trusts taxed at the maximum marginal rate under sections 164/167B, the term denotes the highest basic slab rate under the Finance Act, but surcharge on that tax must be computed according to the Finance Act's slab- and threshold-based surcharge provisions; if the trust's total income does not cross the statutory surcharge threshold, no surcharge is leviable despite basic tax being at the top slab rate.
Case Laws Customs
Show AI Summary
Quicklime classification: impure lime falls under specific tariff heading, not high purity calcium oxide, per HSN purity standard.
The imported material, chemically tested as impure calcium oxide (about 92.2% CaO with mineral impurities), is classifiable under Heading 2522 10 00 as Quicklime. Chapter Note 1 to Chapter 25 must be read contextually and does not disqualify quicklime from Chapter 25 where the tariff text and HSN Explanatory Notes expressly contemplate calcined quicklime. Heading 2825 is confined to chemically pure calcium oxide (approximately 98% CaO) and its residuary sub-heading cannot displace the specific Heading 2522 unless that purity threshold and absence of impurities are met.
Case Laws Income Tax
Show AI Summary
Reassessment notices: surviving-time computation under COVID-era relief and new limitation rules renders late notices time-barred.
The court held that in transitional reassessment cases the appropriate sanctioning authority is determined by when the original three-year expiry fell within the COVID-era relief window, so approval by the ordinarily specified authority for within-three-year cases suffices; limitation is governed by a two-step surviving-time computation measured from the original notice as of the relief-window terminal date, excluding stayed periods and the time allowed to reply, and any later notice issued beyond that surviving time is time-barred under the substituted limitation regime read with the time-relief statute and the legal-fiction continuity.
Case Laws Customs
Show AI Summary
Seizure of goods: six month statutory limit for issuing show cause notice is mandatory despite provisional release.
The six month limit in Section 110(2) for issuing a show cause notice after seizure under Section 110(1) is mandatory; only a single six month extension under the first proviso is permissible. Provisional release under Section 110A does not suspend, extend or neutralise that time bar. The 2018 second proviso making the six month rule inapplicable where provisional release is ordered is a substantive change and does not validate pre amendment seizures prolonged without notice.
Case Laws Income Tax
Show AI Summary
Prima facie adjustments cannot decide debatable legal claims in return processing; contested deductions require scrutiny procedures.
When a claimed deduction depends on timely deposit of employee welfare contributions and the legal question is debatable or pending higher adjudication, summary processing adjustments cannot be used to resolve the dispute; such matters require scrutiny or reassessment procedures and the validity of any processing-stage action must be judged by the law and facts existing at the time of processing.
Case Laws GST
Show AI Summary
Survey discovered unaccounted stock must be assessed under sections 35(6) and 73/74, not via section 130.
Tax liability for unaccounted goods found in a survey must be determined under section 35(6) read with sections 73/74 of the GST Act; section 130 cannot be used to quantify tax or levy penalty in such cases. The statutory cross reference to sections 73/74 requires adherence to their procedural safeguards, and quantification based solely on eye estimates during survey is insufficient without proper weighment or verification.
Case Laws GST
Show AI Summary
Input Tax Credit fraud: writ relief limited where appeals exist; hearings and raw RUDs generally suffice absent prejudice.
The High Court held that writ jurisdiction must be exercised with restraint in complex ITC fraud matters appealable under Section 107; at least one personal hearing and provision of RUDs as collected by the Department generally suffice absent demonstrable prejudice; detailed allocation of penal liability under Sections 73/74/75(13)/122 requires adjudicatory or appellate factfinding and cannot be resolved in writ proceedings.

TMI Notes

Back

All TMI Notes

Showing Results for :
Reset Filters
No Records Found

TMI Notes

Back

All TMI Notes

Showing Results for : Reset Filters

Comparison of section 406 "Payment of advance tax by assessee on his own accord." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

15 September, 2025

Contents
Acts
Rules & Regulations
Summary
Note

Note

-

Bookmark

Print

Print

Section 406 Payment of advance tax by assessee on his own accord

Income-tax Act, 2025

At a Glance

The provided document is Clause 406 of the Income Tax Bill, 2025 (Old Version) setting out the assessee's obligation to pay advance tax on his own accord. It matters because it prescribes the manner, timing and flexibility for instalment payments of advance tax by taxpayers; it affects taxpayers who are liable to pay advance tax and tax administration insofar as enforcement and compliance monitoring are concerned. Effective date or enactment date: Not stated in the document.

Background & Scope

Statutory hooks: Clause 406 refers to other provisions within the same enactment-section 404 (liability to pay advance tax), section 405 (calculation of specified sum), and section 408 (due dates of instalments). The clause is part of a Bill titled "Income Tax Bill, 2025 - Old Version." The clause addresses advance payment of tax by an assessee on his own accord. Definitions provided: the clause expressly defines "specified sum" in sub-section (3) as "current income as estimated by the assessee." No further definitions or explanatory notes are included in the clause text itself.

Statutory Provision Mode

Text & Scope

Coverage: Clause 406 imposes a duty on every person liable to pay advance tax u/s 404 to pay advance tax on the "specified sum" (current income as estimated by the assessee) calculated as per section 405. This duty applies "whether or not he has been previously assessed by way of regular assessment." The advance tax is to be paid "at the appropriate percentage" and "on or before the due date of each instalment, as specified in section 408." Sub-section (2) permits the taxpayer who has paid one or more instalments to increase or reduce advance tax payable in remaining instalments to align with revised estimation of the specified sum and the tax thereon. Sub-section (3) defines "specified sum."

Interpretation

Legislative intent indicated by the text: The clause aims to place an affirmative, self-initiated obligation on taxpayers to estimate their current income and make graduated advance tax payments at prescribed percentages by prescribed instalment dates. The provision emphasises taxpayer self-assessment and flexibility to adjust subsequent instalments when estimates change. The language "on his own accord" underscores voluntary initiation by the assessee rather than assessment-triggered demands. No express guidance on sanctions, interest, or penalties for underpayment is provided in this clause-those matters are Not stated in the document.

Exceptions/Provisos

No provisos, carve-outs or exceptions are present in Clause 406 itself. It does not exempt any class of person, nor does it state thresholds, exclusions, or special regimes (for example, for salaried taxpayers, small taxpayers, or presumptive taxpayers). Any such exclusions are Not stated in the document and would need to be located in other parts of the Bill or Rules.

Illustrations

  • Example 1: An assessee estimates current income for the year and pays the first instalment of advance tax as required by section 408 dates. Later in the year the assessee revises the estimate upwards and increases the amount payable in remaining instalments to accord with the increased specified sum. (This follows sub-section (2).)
  • Example 2: An assessee pays an instalment but subsequently estimates lower current income and reduces the amount payable in remaining instalments accordingly. (Permitted by sub-section (2).)
  • Example 3: A person who has never been subject to regular assessment but is liable u/s 404 must nevertheless comply with sub-section (1) and pay advance tax on his estimated current income. (Direct application of the opening phrase of sub-section (1).)

Interplay

The clause expressly refers to sections 404, 405 and 408 for liability, method of calculation and instalment due dates respectively, indicating that full compliance requires reading Clause 406 in conjunction with those sections. The clause itself does not reference Rules, Notifications, or Circulars. Any interplay with interest provisions for default, determination of "appropriate percentage," or administrative procedure is Not stated in the document and therefore must be read from the other specified sections or secondary legislation.

Differences Between the Two Provisions and Practical Impact

  • Minor punctuation and word-order differences in sub-section (2):

    Document 1 reads: "may increase or reduce the amount of advance tax payable in the remaining instalment or instalments to accord with specified sum and the advance tax payable thereon, and make payment of the said tax in the remaining instalment or instalments accordingly." Document 2 reads: "may increase or reduce the amount of advance tax to accord with specified sum and the advance tax payable thereon, and make payment of the said tax in the remaining instalment or instalments, accordingly."

    Practical impact: Substantively identical-both permit reconciliation of future instalments to reflect the assessee's revised estimate of current income. The corrigendum note in Document 1 corrects a typographical duplication ("tax tax").

Practical Implications

  • Compliance and risk areas: Taxpayers who fall within the ambit of section 404 must proactively estimate current income and ensure instalment payments at the "appropriate percentage" by the due dates in section 408. The clause allows later adjustments, but initial non-payment or materially inaccurate estimation may trigger consequences under other provisions (interest/penalties), which are Not stated in the document.
  • Record-keeping/evidence points: Given the self-estimation requirement, taxpayers should maintain contemporaneous records and documentation supporting the estimate of current income (working papers, projections, assumptions). The clause itself does not mandate specific records or forms-those requirements are Not stated in the document.

Key Takeaways

  • Clause 406 mandates that every person liable u/s 404 must pay advance tax on the assessee's own estimate of current income ("specified sum").
  • Advance tax must be calculated per section 405 and remitted at the appropriate percentages by the installment due dates in section 408.
  • The provision expressly permits the taxpayer to increase or reduce remaining instalments to reflect revised estimates of income and tax during the year.
  • "Specified sum" is defined as current income as estimated by the assessee; no further elaboration of "current income" is provided in the clause.
  • The clause emphasises voluntary self-compliance ("on his own accord"); enforcement, consequences for default, and specific procedural requirements are Not stated in the document.
  • Differences between the Bill (Document 2) and the enacted Section (Document 1) are typographical and ordering changes; substantive obligations remain the same. A corrigendum in the enacted text corrects a typographical duplication.

Full Text:

Section 406 Payment of advance tax by assessee on his own accord

Topics

Acts Income Tax