Section 407
Section 407: advance tax in pursuance of an Assessing Officer's order
Section 407 is the department-driven route for advance tax - where a person has already been assessed by regular assessment and the Assessing Officer believes they are liable for advance tax, the officer can order payment based on the higher of past assessed or returned income, subject to the assessee's own right to revise the estimate.
This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.
When the Assessing Officer can order advance tax
Where a person has already been assessed for the total income of any tax year by regular assessment, and the Assessing Officer is of the opinion that the person is liable to pay advance tax, the officer may require payment of advance tax on the "specified sum" (computed under Section 405), by a written order specifying the instalment(s) and their due dates under Section 408.
This order may be passed at any time during the financial year, but not later than the last day of February of that financial year, and must be followed by a notice of demand under Section 289.
Meaning of "specified sum" for the order
"Specified sum" here means the higher of: the total income of the latest tax year for which the assessee has been assessed by regular assessment; or the total income returned by the assessee in any return furnished for a subsequent tax year.
Amending the order after a later return or assessment
If, after the order, the assessee furnishes a return of income (under Section 263 or in response to a notice under Section 268), or a later regular assessment is made for a subsequent tax year, the Assessing Officer may amend the order and require advance tax on a revised specified sum - the total income declared in that later return or computed in that later regular assessment - by an amended order passed before 1 March of that tax year, again followed by a demand notice under Section 289.
Effect of late service of the demand notice
If the demand notice under Section 289 is served after any of the instalment due dates in Section 408, the amount specified becomes payable on or before each due date falling after the date of service.
Assessee's right to revise the officer's estimate
If the assessee estimates the advance tax payable on current income to be lower than the amount in the officer's order, they may send an intimation in the prescribed form to the Assessing Officer and pay advance tax on their own lower estimate, at the appropriate percentage, on or before the due dates falling after the intimation.
If the assessee instead estimates that advance tax payable would exceed the amount in the order (or their earlier intimation), they must pay the higher amount that accords with their estimate, on or before the due date of the last instalment under Section 408.
Frequently asked questions
By when must an Assessing Officer pass the initial order requiring advance tax?
At any time during the financial year, but not later than the last day of February of that financial year, under Section 407(2).
Can an assessee pay less advance tax than an Assessing Officer's order demands?
Yes - Section 407(8) lets the assessee send an intimation estimating a lower liability and pay accordingly, on or before the due dates falling after the intimation.
What happens if the assessee's own estimate is higher than the officer's order?
Under Section 407(9), the assessee must pay advance tax on the higher, self-estimated amount, on or before the due date of the last instalment specified in Section 408.
Related sections
Want this applied to your actual filing, not just explained?
Get help responding to an advance tax orderLast updated 9 September 2026