1. Who is Exempt?
- Resident Individuals aged 60 years or above(Senior Citizens).
- Condition: Must not have any income chargeable under “Profits and Gains of Business or Profession” (PGBP).
- Applies to:
- Pension income.
- Rental income.
- Interest income (FDs, savings accounts, etc.).
- Capital gains.
2. Who is NOT Exempt?
- Senior citizens with business or professional income(must pay advance tax if liability > ₹10,000).
- Non-resident senior citizens(even if they have no business income).
3. Key Points
- No need to pay advance tax in instalments(unlike regular taxpayers).
- Final tax liabilitymust still be paid before filing ITR (if applicable).
- TDS/TCS adjustmentsstill apply (if tax liability after TDS is ≤ ₹10,000, no advance tax needed).
4. Example
- Sharma (Age 65, Retired)
- Income Sources: Pension (₹4 lakh) + FD Interest (₹50,000).
- Tax Liability: ₹10,000 (after deductions).
- Advance Tax?Not required (senior citizen with no business income).
- Gupta (Age 62, Freelancer)
- Income Sources: Freelance earnings (₹6 lakh) + Rental Income (₹2 lakh).
- Tax Liability: ₹50,000 (after deductions).
- Advance Tax?Required (since she has business income).
5. Due Dates (For Non-Exempt Taxpayers)
| CATEGORY | DUE DATE | AMOUNT PAYABLE |
| Regular Taxpayers | 15th June, Sept, Dec, March | 15%, 45%, 75%, 100% |
| Senior Citizens (Business Income) | Same as above | Must follow instalments |
| Presumptive Tax (44AD/44ADA) | 15th March only | 100% in one go |
6. Penalty for Non-Compliance (If Applicable)
- Interest under Section 234B: 1% per month if <90% of tax paid by 31st March.
- Interest under Section 234C: 1% per month for delayed instalments (if business income exists).
