What is advance tax and who is liable to pay ?

Section "208" of the income-tax act -1961,clearly said about Advance tax. Let's take a brief about section 208, which says that every person sec 2(31) whose estimated tax liability for the year is 10,000 or more, shall pay the tax in the form of "advance-tax". illustration: Mr. Singh has a total tax liability of 10,100. is he liable to pay advance tax?

Answer: yes, Mr. Singh is liable to pay advance tax, because section 208 clearly says, if your estimated tax during the year is 10,000 or more, shall pay the tax in the form of advance tax.

illustration: Mr. Singh has a total tax liability of 9,999. is he liable to pay advance tax?

Answer: No, because Mr. Singh's total tax liability is less than 10,000 though he is not liable to pay advance tax.