Credit for advance tax
[Section-410 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
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 the assessee in the regular assessment.
FAQs on Section 410 of Income Tax Act 2025
What is Section 410 of the Income Tax Act, 2025 about?
Section 410 deals with the credit of advance tax paid by or recovered from an assessee. It clarifies how such payments are treated during assessment.
What types of payments are covered under Section 410?
Only sums paid as advance tax are covered. Penalties or interest are explicitly excluded.
To which tax year is the credit for advance tax applied?
The credit is given for the tax year in which the advance tax was payable.
Is advance tax considered a final payment of tax under Section 410?
No, it is treated as a payment of tax and adjusted during the regular assessment of the income for that year.
Does this section apply to all assessees?
Yes, it applies to any assessee who has paid or from whom advance tax has been recovered.
What happens to the credit if the assessee has overpaid advance tax?
The excess will be credited and adjusted during the regular assessment, potentially leading to a refund if due.
Can penalty or interest payments be claimed as credit under Section 410?
No, only the principal amount of advance tax is eligible for credit. Penalty or interest is not included.
From when is Section 410 effective?
It is effective from 1st April, 2026.
Is the credit under Section 410 automatic during assessment?
Yes, the credit for advance tax is automatically given during the regular assessment of the income for the relevant tax year.
Does Section 410 apply in case of reassessment?
Section 410 specifically refers to regular assessment. It does not explicitly address reassessment.
Is the mode of payment (online/offline) relevant for Section 410 credit?
No, the mode of payment does not affect the credit entitlement under this section, as long as it is a valid advance tax payment.
Can an assessee dispute the credit not being allowed under Section 410?
Yes, if the credit is not properly accounted for, the assessee can raise the issue during assessment proceedings or appeal.
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