Section 77 - Amendment of section 209 - Direct Tax Laws (Amendment) Act, 1987

77. Amendment of section 209. In section 209 of the Income-tax Act, with effect from the 1st day of April, 1988,- (a) for sub-section (1), the following sub-section shall be substituted, namely: - (1) The amount of advance tax payable by an assessee in the financial year shall, subject to the provisions of sub-sections (2) and (3), be computed as follows, namely :- (a) where the calculation is made by the assessee for the purposes of payment of advance tax under sub-section (1) or sub-section (2) or sub-section (5) or sub-section (6) of section 210, he shall first estimate his current income and income-tax thereon shall be calculated at the rates in force in the financial year; (b) where the calculation is made by the Assessing Officer for the purpose of making an order under sub-section (3) of section 210, the total income of the latest previous year in respect of which the assessee has been assessed by way of regular assessment or the total income returned by the assessee in any return of income furnished by him for any subsequent previous year, whichever is higher, shall be taken and income-tax thereon shall be calculated at the rates in force in the financial year; (c) where the calculation is made by the Assessing Officer for the purpose of making an amended order under sub-section (4) of section 210, the total income declared in the return furnished by the assessee for the later previous year, or, as the case may be, the total income in respect of which the regular assessment, referred to in that sub-section has been made, shall be taken and income-tax thereon shall be calculated at the rates in force in the financial year; (d) the income-tax calculated under clause (a) or clause (b) or clause (c) shall, in each case. be reduced by the amount of income-tax which would be deductible at source during the said financial year under any provision of this Act from any income (as computed before allowing any deductions admissible under this Act) which has been taken into account in computing the current income or as the case may be, the total income aforesaid; and the amount of income-tax as so reduced shall be the advance tax payable. ; (b) in sub-section (2),- (i) in clause (a),- (A) in the opening portion, for the words, brackets, figures and letter where the assessee sends a statement under sub-section (1) of section 209A or where the Income- tax Officer makes an order under sub-section (1) or sub-section (3) of section 210 , the words, brackets and figures where the Assessing Officer makes an order under sub- section (3) or sub-section (4) of section 210 shall be substituted; (B) for sub-clause (ii), the following sub-clause shall be substituted, namely :- (ii) if the total income declared by the assessee for the later previous year referred to in sub-section (4) of section 210 forms the basis of computation of advance tax, the net agricultural income as returned by the assessee in the return of income for the assessment year relevant to such later previous year; ; (ii) for clause (b), the following clause shall be substituted, namely :- (b) in cases where the advance tax is paid by the assessee on the basis of his estimate of his current income under sub-section (1) or sub-section (2) or sub-section (5) or sub-section (6) of section 210, the net agricultural income, as estimated by him, of the period which would be the previous year for the immediately following assessment year; ; (c) in sub-section (3),- (i) in the opening portion, for the words and figures under section 210 , the words, brackets and figures under sub-section (3) or sub-section (4) of section 210 shall be substituted; (ii) in clause (b), for the words, figures and letter on the basis of which tax has been paid by the Hindu undivided family under section 140A , the words, figures and brackets in respect of which a return of income is furnished by the Hindu undivided family under section 139 or in response to a notice under sub-section (1) of section 142 shall be substituted.