Senior Citizens do not have to pay advance tax if they have no Business Income:- This article is for the senior citizens who are facing confusions about whether they are liable to pay Advance Taxes. Some people might have created confusions into your mind regarding the fact that whether you are liable to pay your taxes in advance or not. This article would try to describe the Tax Rule regarding this in simple terms.
Section 207 of the Income Tax Act captures that Advance Tax does not need to be paid if an Individual Resident Indian-
- does not have any income chargeable under the head “profits and gains of business and profession; and
- is of the age of sixty years or more at any time during the previous year.
The said incomes can be classified by your Income Tax advisor under the head Income from Other Sources, Income from House Property and Income under the head salary respectively. Therefore, in these three cases a senior citizen does not earn any income from his business or profession. These people are out of the ambit of paying Advance Tax. Please note that this rule does not apply to a Non-resident.
The duty of a Senior Citizen who is not liable to pay Advance Tax:-
Senior Citizens will pay their Taxes due at anytime before filing their Income Tax Return on Self-Assessment basis only if they have such incomes on which tax payable is higher than the TDS deducted from interest income on Fixed Deposits, Rents, etc. A senior citizen is liable to pay taxes when his income exceeds Rs.2,50,000 for the financial year 2012-13. An individual need to file his Income Tax Return upto 31st July, 2013 for the financial year 2012-13
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