Income Tax Act

Official PDF pages 506–510

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( ii )   for crediting such sum to his Non-resident (External) Account
maintained as per the provisions of the Foreign Exchange
Management Act, 1999 (42 of 1999), and any rules made
thereunder;
( d )   in the case of furnishing of information relating to payment to a
non-resident, not being a company, or to a foreign company, of any
sum, whether or not chargeable under the provisions of this Act—
( i )   the payer himself; or
( ii )   if the payer is a company, the company itself including the
principal officer thereof;
( e )   in the case of credit, or, as the case may be, payment of any other
sum chargeable under the provisions of this Act—
( i )   the payer himself; or
( ii )   if the payer is a company, the company itself including the
principal officer thereof;
( f )   in the case of credit, or as the case may be, payment of any sum
chargeable under the provisions of this Act made by or on behalf
of the Central Government or the State Government—
( i )   the drawing and disbursing officer; or
( ii )   any other person, by whatever name called,
responsible for crediting, or paying such sum;
( g )   in the case of a person not resident in India—
( i )   the person himself; or
( ii )   any person authorised by such person; or
( iii )   the agent of such person in India including any person treated
as an agent under section 306;
( 28 )   “professional services” means services rendered by a person in the course
of carrying on legal, medical, engineering or architectural profession
or the profession of accountancy or technical consultancy or interior
decoration or advertising or such other profession as may be notified
by the Board for the purposes of this section, or of section 62;
( 29 )   “rent” means any payment, by whatever name called, under any lease,
sub-lease, tenancy or any other agreement or arrangement for the use
of (either separately or together) any—
( a )   land; or
( b )   building (including factory building); or
( c )   land appurtenant to a building (including factory building); or
( d )   machinery; or
( e )   plant; or
( f )   equipment; or
( g )   furniture; or
( h )   fittings,

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whether or not any or all of the above are owned by the payee, and for
the purposes of section 393(1) [Table: Sl. No. 2( i )], only the payment
with reference to assets mentioned in sub-clauses ( a ) ,   ( b ) and ( c ) shall
be treated as rent;
( 30 )   “royalty” shall have the meaning assigned to it in section 9(6)( b ) ;
( 31 )   “scrap” means waste and scrap from the manufacture or mechanical
working of materials which is definitely not usable as such because of
breakage, cutting up, wear and other reasons;
( 32 )   “securities” shall have the same meaning as assigned to it in section 2( h )
of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);
( 33 )   “seller” means—
( a )   for the purposes of section 394(1) (Table: Sl. Nos. 1 to 6),—
( i )   the Central Government; or
( ii )   a State Government; or
( iii )   any local authority or corporation or authority established by
or under a Central Act or State Act or Provincial Act; or
( iv )   any company or firm or co-operative society; or
( v )   an individual or a Hindu undivided family, whose total sales,
gross receipts or turnover from the business or profession
carried on by him exceed one crore rupees in case of business
or fifty lakh rupees in case of profession during the tax year
immediately preceding the tax year in which the goods of the
nature specified in such serial numbers are sold;
( b )   for the purposes of section 394(1) (Table: Sl. No. 8), a person who
sells overseas tour program package;
( 34 )   “services” for the purposes of section 393(1) [Table: Sl. No. 8( v )], includes
“fees for technical services” and fees for “professional services”, as defined
in this section;
( 35 )   “specified bank” means a banking company as the Central Government
may, by notification, specify;
( 36 )   “specified company” means for the purposes of section 393(1) [Table:
Sl. No. 4( i )] and 393(2) (Table: Sl. No. 10), a company as referred to
in section 2( h ) of the Unit Trust of India (Transfer of Undertaking and
Repeal) Act, 2002 (58 of 2002);
( 37 )   “specified person” means—
( a )   any person, not being an individual or Hindu undivided family; or
( b )   an individual or a Hindu undivided family, whose total sales, gross
receipts or turnover from the business or profession carried on by
him exceed one crore rupees in case of business or fifty lakh rupees
in case of profession during the tax year immediately preceding the
tax year in which such income or sum is credited or paid;
( 38 )   “special purpose vehicle” shall have the meaning in Schedule V (Note 2);

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( 39 )   “specified senior citizen” means an individual, being a resident in India—
( a )   who is of the age of seventy-five years or more at any time during
the tax year;
( b )   who is having pension income and no other income except the in -
terest received or receivable from any account maintained by such
individual in the same specified bank in which he is receiving his
pension income; and
( c )   has furnished a declaration to the specified bank containing
particulars, in such form and verified in such manner as may be
prescribed;
( 40 )   “specified undertaking” shall have the same meaning as assigned to it
in section 2( i ) of the Unit Trust of India (Transfer of Undertaking and
Repeal) Act, 2002 (58 of 2022);
( 41 )   “time deposits” means deposits (including recurring deposits) repayable
on the expiry of fixed periods;
( 42 )   “unit” for the purposes of section 393(1) [Table: Sl. No. 4( iii )] and section
393(2) (Table: Sl. No. 8) shall have the meaning assigned to it in section
224( 10 )( c ) ;
( 43 )   “Unit Trust of India” means the Unit Trust of India as referred to in
the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002
(58 of 2002);
( 44 )   “University”, referred in section 392(4) ,   means a University established
or incorporated by or under a Central, State or Provincial Act, and in -
cludes an institution declared under section 3 of the University Grants
Commission Act, 1956 (3 of 1956), to be a University for the purposes
of that Act;
( 45 )   “user” means any person who accesses or avails any computer resource
of an online gaming intermediary;
( 46 )   “user account” means account of a user registered with an online gaming
intermediary;
( 47 )   “work” shall include—
( a )   advertising;
( b )   broadcasting and telecasting including production of programmes
for such broadcasting or telecasting;
( c )   carriage of goods or passengers by any mode of transport other
than by railways;
( d )   catering;
( e )   manufacturing or supplying a product according to the requirement
or specification of a customer by using material purchased from—
( i )   such customer; or
( ii )   its associate, being a person placed similarly in relation to such
customer as is the person placed in relation to the assessee
under the provisions contained in section 36(3),

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but does not include—
( A )   manufacturing or supplying a product according to the
requirement or specification of a customer by using material
purchased from a person, other than such customer or asso -
ciate of such customer; or
( B )   any sum referred to in section 393(1) [Table: Sl. No. 6( iii )
3
].
96
[ ( f )   supply of manpower to a person to work under his supervision,
control or direction. ]
C.—Advance payment of tax
Liability for payment of advance tax.
403.   (1) Advance tax shall be payable during any financial year in respect of the
current income of the assessee, as per the provisions of this Part.
(2)   For the purposes of this Part, “current income” of a tax year means the total
income of the assessee which would be chargeable to tax for such tax year.
(3)   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 tax year.
Conditions of liability to pay advance tax.
404.   Advance tax shall be payable by the assessee during a financial year, where
the amount of such tax payable during that year, as computed under this Part,
is   `   10000 or more.
Computation of advance tax.
405.   (1) The amount of advance tax payable by an assessee under section 404,
on his own accord under section 406, or in pursuance of an order of an
Assessing Officer under section 407, in the financial year shall, subject to the
provisions of sub-section (2), be computed as under—
A = B – C
where,—
A =   the amount of advance tax payable in a financial year;
B =   income-tax on the specified sum calculated at the rates in force in the
financial year, where “specified sum” shall have the meaning assigned
to it in section 406 or 407;
C =   amount of income-tax which would be deductible or collectible at source
during the said financial year under any provision of this Act from any
income subject to the following:—
( a )   such income is computed before allowing any deduction admissible
under this Act and has been taken into account in computing the
specified sum; and
96.   Inserted by the Finance Act, 2026, w.e.f.   1-4-2026 .

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( b )   ( i )   the person responsible for deducting tax has paid or credited
such income after deduction of tax; or
( ii )   the person responsible for collecting tax has received or debited
such income after collection of tax.
(2) In the case of any class of assessees, where the Finance Act of the relevant year
provides that, net agricultural income shall be taken into account for the purposes
of computing advance tax, then,—
( a )   for the purposes of order as mentioned in section 407(1) and (4) ,   the
net agricultural income shall be the amount that has been taken into
account for the purposes of charging income-tax on the specified sum
as mentioned in sub-sections (3) and (6) of the said section; or
( b )   in any other situation, the net agricultural income as estimated by the
assessee for the tax year.
Payment of advance tax by assessee on his own accord.
406.   (1) Every person, who is liable to pay advance tax under section 404
(whether or not he has been previously assessed by way of regular assessment)
shall, on his own accord, pay advance tax on the specified sum, calculated in the
manner laid down in section 405, at the appropriate percentage, on or before the
due date of each instalment, as specified in section 408.
(2) A person who pays any instalment or instalments of advance tax under sub-sec -
tion (1), may increase or reduce the amount of advance tax payable in the remain -
ing 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.
(3) For the purposes of this section, the expression “specified sum” means current
income as estimated by the assessee.
Payment of advance tax by assessee in pursuance of order of Assessing Officer.
407.   (1) Where a person has already been assessed for the total income of any tax
year by way of regular assessment and the Assessing Officer is of the opinion
that such person is liable to pay advance tax, he may require such person to pay
advance tax on the specified sum, calculated in the manner laid down in section
405, by an order in writing, specifying the instalment or instalments in which such
tax is to be paid, on or before the due date of each instalment specified in section
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 issu ance 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.