What happens when a senior citizen does not pay advance tax?

Senior citizens do not have to pay advance tax on their income for the year and hence they are spared from the trouble of having to ensure that every few months they make the calculations and pay the amount to meet the requirements. This is just a relief from the procedure and it does not change several other aspects related to the income tax calculations. This is an important thing that has to be understood and attention has to be paid to these areas so that the most crucial part of the process does not get missed out. Here is a closer look at the entire issue.

Advance tax requirement

The advance tax requirement says that if the amount of tax that has to be paid is Rs 10,000 or more during the year then a person has to pay advance tax. This means that they have to ensure that by September, December and March 15 they have deposited a certain percentage of their total tax with the government in the form of advance tax. This entire process requires making a rough calculation about the income that will be earned during the year and then making the required payment based on a specific percentage of this figure with the government. Since this requires quite some effort there is a provision whereby senior citizens need not pay the advance tax and this frees them from following these lengthy requirements.

Tax payment

Just because there is no advance tax to be paid does not mean that the senior citizen does not have to pay the required amount of tax that they might owe. For example every year there would have to be a look at the total income that is earned by the individual and the tax that would be calculated on this and this has to be paid. The senior citizen can pay this earlier during the current year itself or they can pay at the time of the filing of the return which would be called a self assessment payment. This would require that a working of the total income is made and then planning undertaken for the payment of the amount that is due so it means that there is no relief from the tax payment. This is one thing that should not be missed out otherwise a notice would come for the payment of the tax amount.


There might be a relief from the advance tax payment but other areas of taxation procedure do not change for the individual. This means that if the income of the senior citizen is not below the taxable limit and they earn income that is higher than the threshold in several areas like bank fixed deposits or some other interest then there would have to be a tax deduction at source that would take place. The senior citizen would be able to give Form 15H but only if their income is below the taxable limit otherwise the tax deduction would take place as normal and they would get the net figure after the deduction is made. This amount that is deducted would though be available as a credit when the overall calculation for tax is made and hence this would be like a normal tax calculation.


There is also the need for a senior citizen to file their tax return in case their income exceeds the specific limit and hence there is no relief from filing their returns too. They should be able to do the required process in the time period provided because they would have the necessary time to get the details and complete their calculation. This is another thing that should not be missed out in the entire process.