Advance Tax on Senior Citizens?

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  1. AKD

    AKD Member

    I retired from service on superannuation in 2005. My income since then is from pension and interest only.
    It is my practice to pay major portion of income tax every year in three installments of advance tax by Sept 15, Dec 15 , March 15 of a financial year for income earned during that year and then the residual portion as self assessment tax before submission of tax return on or before the next 31 July.
    But, I have been told by other pensioners like me that it is not obligatory for Sr Citizens having only pension and interest income to pay advance tax and they can discharge tax obligation by one time payment before expiry of a financial year on 31 March for income earned during that financial year.
    I would like to know the correct provision of income tax act in this matter.
     
  2. rudrabose

    rudrabose Active Member

    Senior Citizens not having any income from Business are exempted from payment of Advance Tax and are only required to pay Self Assessment Tax.
     
  3. rudrabose

    rudrabose Active Member

    This Amendment was introduced in Finance Act 2012 and was applicable from 1st April 2012
     
  4. manohar agarwal

    manohar agarwal New Member

     
  5. AKD

    AKD Member

    Thank you for specific reply with reference to the relevant amendment of the IT Act.
    This is a relief to know that I do not have to pay advance tax very punctiliously three times every year and any slip up will not bring in section 234B/C.
    When this self assessment tax will become payable ?
    After 31 March on receipt of interest certificates from banks, but of course before filing of tax return on 31 July?
    Please confirm.
     
  6. auditya

    auditya New Member

    It was absolutely correct that you, being a senior citizen are not supposed to pay advance tax . But as you are an assessee, have to pay self assessed tax on or before july 31st of the respective assessment year, or else interest have to be paid for delayed payment .
     
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