Section 410
Section 410: credit for advance tax
Section 410 is a short but important provision: it confirms that any advance tax actually paid or recovered (excluding penalty or interest) is treated as tax paid for the relevant tax year and must be credited to the assessee when the regular assessment is made.
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.
What Section 410 says
"Any sum, other than a penalty or interest, paid by or recovered from an assessee as advance tax in pursuance of this Part shall be treated as a payment of tax in respect of the income of the tax year in which it was payable, and credit therefor shall be given to such assessee in the regular assessment."
What this means in practice
Whatever amount of advance tax an assessee has paid, or that has been recovered from him, during a tax year is treated as tax paid for that same tax year - not for the year in which it happened to be paid or recovered.
This amount must be credited against the assessee's final tax liability when the regular assessment for that year is completed.
The credit is limited to the advance tax itself; any penalty or interest paid is excluded and is not treated as advance tax for this purpose.
Frequently asked questions
Does interest or penalty paid count as advance tax credit under Section 410?
No. Section 410 expressly excludes "a penalty or interest" - only the actual advance tax sum paid or recovered is treated as a payment of tax and credited in the regular assessment.
For which tax year is the advance tax credited?
It is treated as payment of tax for the tax year in respect of whose income it was payable, and credited to the assessee in the regular assessment for that year.
Related sections
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Get help computing and reconciling your advance tax creditLast updated 9 September 2026