Advance tax for income from salary

POSTED BY Vishwas Gupta ON September 8, 2012 8:52 pm COMMENTS (3)

I changed my job in June 2012. My previous company computed and deducted the tax on full and final settlement. However, because I have not submitted these details to my current employer, I will need to shell out additional taxes after this financial year completes. I have two ways ahead –

1. Provide all the details about income from previous employer to current employer so that they can recalculate the whole year tax and start deducting more amount accordingly.

2. I pay the additional amount myself.

If I go by second choice, do I need to pay the advance tax? Or will it be alright to pay it as part of ITR filing in July 2013? I don’t want to pay any penality.

3 replies on this article “Advance tax for income from salary”

  1. Vishwas Gupta says:

    Thank you Ashal for your quick response and advice. Just out of curiosity, please let me know if you know the answer of my second point as well.

    1. Dear Vishwas, as the income has been already earned, there is advance tax liability on you, if you opt to pay by yourself & failing to do so ‘ll invite penal interest. By the way, if you opt to pay this tax in July 2013, just before return filing, additional interest ‘ll be payable.

      Thanks

      Ashal

  2. Dear Vishws, if you do not want to pay penalty, please declare that past employment income to your current employer. That’s the best method than paying lump sum on your own.

    Thanks

    Ashal

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