Taxpayers are required to pay advance tax during the year on the basis of their own computation of income. The advance tax is payable on total income of the year from all sources i.e. salary, business, profession etc. (including capital gain, interest, rental income or lottery/prize money). The advance tax is payable if it exceeds Rs.10,000 for the year. In the case of an individual, advance tax needs to be deposited as below: 30% of advance tax payable on or before 15th September 60% of advance tax payable on or before 15th December 100% of advance tax payable on or before 15th March In case of default in payment of advance tax, 1% p.m. interest is to be paid in addition to the tax payable amount, under section: 234B - If you have not paid the advance tax i.e. 90% of total tax payable before 31st March. 234C - If you have not paid the installment in time i.e 30% before 15th Sept, 60% before 15 Dec and balance before 15th March. If your total tax payable is below Rs 10,000, you are not obliged to deposit advance tax as per income tax laws. Also, if your main source of income is salary and all other income (like interest) has been declared to your employer, there is no need to deposit advance tax. However, salary income needs to be included if salary details under the previous employer are not given to the new company on joining.
Posted on: Sat, 30 Aug 2014 18:22:47 +0000
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