974 (Income tax) How taxpayer must build tax credit timely to meet tax liability(Concept) Narration - By Amlan Dutta Video Link - https://youtube/watch?v=-I1AlF9fhbM Method used - Harvard case model Assumed - Previous year 2013 14 , Taxpayer - Amlan (Individual) Resident status - Resident and ordinary resident (ROR) Income head = Other sources(FD interest income 10 lacs) No deductions availed under section 80 ( Chapter VI A ) (Non senior - less than 60 years old ) Here since no deductions availaed under section 80 ,so as per slabs , tax will apply at 1.33 lacs on total income of 10 lacs Bank deducts TDS at the rate of 10 % i.e 1 lac So Amlan has tax credit of 1 lac available Is that much tax credit sufficient to match his tax liability No , he must further build this tax credit by 0.33 lacs to meet up his tax liability So he needs to pay taxes in advance ...when he does that using challan 280 and deposits that much money , his tax credit builds up to 1.33 lacs Now it is indeed sufficient to match his tax liability If he doesnt pay timely , then he may have to later shell out more in nature of self asessment tax Humble regards , Amlan Dutta
Posted on: Sat, 20 Sep 2014 03:02:21 +0000
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