Income Tax Act, 2025  ·  Chapter XVIII — Collection and Recovery of Tax  ·  Section 408

Section 408
Instalments of advance tax and due dates

IT Act 2025 Chapter XVIII Effective 1 April 2026 Old: 553 211
New Provision
Section 408, IT Act 2025
Replaces (IT Act 1961)
553 211
Chapter
Chapter XVIII — Collection and Recovery of Tax
Effective From
1 April 2026
Statutory Text — Section 408

ll the assessees who are liable to pay advance tax, other than the assessee referred to in sub-section (2), shall pay the same on the current income calculated in the manner laid down in section 405 in four instalments during each financial year and the due date of each instalment and the amount of such instalment shall be as specified in the Table below. Table Sl. No. Due date of Amount payable instalment A B C 1. On or before the Not less than 15% of such advance tax. 15th June. 2. On or before the Not less than 45% of such advance tax, as reduced 15th September. by the amount, if any, paid in the earlier instalment. 3. On or before Not less than 75% of such advance tax, as reduced the 15th by the amount or amounts, if any, paid in the earlier December. instalment or instalments. 4. On or before The whole amount of such advance tax, as reduced the 15th March. by the amount or amounts, if any, paid in the earlier instalment or instalments. (2) An assessee, who declares profits and gains as per the provisions of section 58(2) (Table: Sl. No. 1 or 3), shall pay the whole amount of advance tax on the current income, calculated in the manner laid down in section 405 during each

financial year, on or before the 15th March. (3) Any amount paid by way of advance tax on or before the 31st March, shall be treated as advance tax paid during the financial year ending on that day for all the purposes of this Act. When assessee is deemed to be in default. 409. A person shall be deemed to be an assessee in default, if such person— (a) does not pay on the date specified in section 408, any instalment of the advance tax that he is required to pay by an order of the Assessing Officer under section 407(1) and (4); or (b) does not send to the Assessing Officer an intimation under section 407(8) on or before the date on which any such instalment as is not paid becomes due; or (c) does not pay on the basis of his estimate of his current income, the advance tax payable by him under section 407(9), in respect of such instalment or instalments.

Shahi & Co. — Our Understanding
This section falls under Chapter XVIII which deals with collection and recovery of tax — including TDS, advance tax, self-assessment tax, and recovery proceedings.
Practical Note: TDS compliance is one of the most heavily scrutinised areas in income tax. Failure to deduct, short deduction, or late deposit of TDS attracts interest, penalty, and disallowance of the related expenditure.
Shahi & Co., Chartered Accountants
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Disclaimer: This is a reproduction of Section 408 of the Income Tax Act, 2025 (No. 30 of 2025) as published in the Official Gazette of India (CG-DL-E-22082025-265620) for informational and reference purposes only. Shahi & Co., Chartered Accountants makes no warranty as to completeness or accuracy. For the official authenticated text refer to egazette.gov.in or incometaxindia.gov.in. This does not constitute legal or tax advice.