Section 219 of the Income-tax Act, 1961: Credit for Advance Tax
Section 219 provides that advance income tax paid or recovered from an assessee is credited against the tax liability for the relevant assessment year. It excludes payments representing interest or penalty.
Meaning and scope of Section 219
Advance tax is income tax paid during the year in which income is earned, rather than waiting until final assessment. Under Section 219, eligible amounts paid as advance tax, or recovered as advance tax, are treated as tax payments against the income of the previous year corresponding to the relevant assessment year.
The Assessing Officer must allow credit for those qualifying amounts in the regular assessment. Amounts paid as interest or penalty do not become advance-tax credit merely because they were paid alongside advance tax.
Statutory provision: Section 219
Any sum, other than a penalty or interest, paid by or recovered from an assessee as advance tax in pursuance of this Chapter shall be treated as a payment of tax in respect of the income of the period which would be the previous year for an assessment for the assessment year next following the financial year in which it was payable, and credit therefor shall be given to the assessee in the regular assessment.
Historical amendment: The former proviso dealing with provisional assessment under Section 141A was omitted with effect from 1 April 1989. The source page's amendment note is retained here for historical reference.
Section 410 of the Income-tax Act, 2025
Section 410 continues the principle of advance-tax credit, expressed using the new Act's tax year terminology. It treats qualifying advance tax paid or recovered during a tax year as payment of tax for income of that tax year and provides for credit in regular assessment. Interest and penalties remain excluded from that credit.
| Issue | Income-tax Act, 1961 | Income-tax Act, 2025 |
|---|---|---|
| Relevant provision | Section 219 | Section 410 |
| Period of income | Previous year and corresponding assessment year | Tax year |
| Eligible amount | Advance tax paid or recovered | Advance tax paid or recovered |
| Excluded amount | Interest and penalty | Interest and penalty |
Practical example
Suppose a taxpayer has paid Rs. 70,000 as advance tax for the applicable period and the assessed income-tax liability, after other eligible tax credits, is Rs. 90,000. The Rs. 70,000 is taken into account as advance-tax credit, leaving a balance of Rs. 20,000 before any applicable interest, fees, or other adjustments. The precise calculation depends on the assessment and tax payments on record.
How to check and claim credit
- Verify advance-tax challans and the correct PAN, assessment year or tax year, and payment particulars.
- Check tax payment details in the income-tax e-filing account and relevant tax statements.
- Report the advance-tax payments accurately in the applicable income-tax return.
- Review the processed return or assessment and seek correction through the applicable procedure if valid credit is missing.
Related provisions
For the earlier Act, read Sections 207, 208, 209, 210 and 211 on liability, calculation and payment of advance tax.
Official sources and references
- Income-tax Act, 1961, as amended by Finance Act, 2025 - Income Tax Department (PDF)
- Income-tax Act, 2025, as amended by Finance Act, 2026 - Income Tax Department (PDF)
- Tax Payments FAQs - Income Tax Department
- Historical Section 219 text - Income Tax Department
Historical statutory note
The original page recorded that the proviso to Section 219 was omitted with effect from 1 April 1989. The proviso formerly related to credit in provisional assessments under Section 141A.
Last reviewed: 27 October 2026. This article provides general statutory information; the governing Act and transitional provisions should be checked for the relevant tax period.