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Income-tax Act, 1961 · Chapter XVII: Collection and Recovery of Tax · C.—Advance payment of tax

Section 207: Liability for payment of advance tax

The Income-tax Act, 1961 was repealed by the Income-tax Act, 2025 from 1 April 2026. The text is kept here because the judgments below apply it.

In plain words

Tax is payable in advance during a financial year based on the total income chargeable for the following assessment year, known as current income. This follows sections 208 to 219. The rule does not apply to an individual resident in India who is sixty years or more at any time during the previous year and has no income chargeable under the head Profits and gains of business or profession.

  • Tax is payable in advance during any financial year.
  • It applies to total income chargeable for the next assessment year.
  • This income is called current income.
  • The provisions of sections 208 to 219 apply.
  • The rule does not apply to an individual resident in India.
  • The person must be sixty years or more at any time during the previous year.
  • The person must not have income chargeable under the head Profits and gains of business or profession.

A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.

Official text

[(1)] Tax shall be payable in advance during any financial year, in accordance with the provisions of sections 208 to 219 (both inclusive), in respect of the total income of the assessee which would be chargeable to tax for the assessment year immediately following that financial year, such income being hereafter in this Chapter referred to as —current income‖. [(2) The provisions of sub-section (1) shall not apply to an individual resident in India, who—

(a) does nothave 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 previous year.]

Source: India Code (Legislative Department), the text of the Act as it stood before its repeal. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.

Supreme Court judgments citing the section 207