Advance tax on FD income

POSTED BY Ramprakash ON February 15, 2013 6:24 pm COMMENTS (9)

Hi

I fall in 20% tax bracket. I am salaried and TDS is deducted by my employer.

I also have income of around 1.5 lac from FD. Banks deduct TDS @ 10%.

I also have some income from NCDs where there is no TDS.

What is the last date by which I have to pay the remaining tax on FD so as to avoid interest penalty u/s 234 (a)(b)(c) by IT deptt.

Thanks in advance.

Ramprakash

9 replies on this article “Advance tax on FD income”

  1. Dear Ramprakash, that’s not the case, which you are understanding. Your employer is depositing the tax on mly basis but the data uploading is done on qtly basis.

    Thanks

    Ashal

  2. Dear Ramprakash, even the employer is deducting tax on our salary using forecast for future months. As & when any change happens in actual, the calculation changes & tax is deducted accordingly.

    You may pay excess Tax as of now & later on claim back in your ITR as refund for the same.

    Thanks

    Ashal

    1. Ramprakash says:

      Yes Ashal, it is true that employers deduct TDS based on forecasts. But they remit the same to the govt. in the 1st quarter of the succeeding FY (atleast for the Q4 of the FY).

      For eg. My form 26AS shows that last year my employer deposited the TDS for Q4 in the 3rd week of May.

  3. Karthik says:

    Declaring to employer is the easiest option, since you finally have to use only the Form 16 to file the tax returns.

  4. Dear Ramprakash, you have 2 options.

    1. Disclose all the income to your employer & let the tax deducted from your salary.

    2. Pay all the due tax right now from your own money with out any delay.

    Chose which one is appealing to you.

    thanks

    Ashal

    1. Ramprakash says:

      Unfortunately the last date to declare other income and tax investments with my employer is over. So I will have to pay it directly.

      I have another question. Does it make any difference if I pay it now or just before 15 March 2013?

      Thanks

      1. Dear Ramprakash, why do want to postpone till 15th Mar? Any specific reason?

        Thanks

        Ashal

        1. Ramprakash says:

          Just that my money was in liquid funds. I redeemed and have paid the advance tax today as per my income earned till date based on TDS figures in Form 26AS. I am expecting further interest income to be credited in my account in the month of March. I dont know how much it will be, but it will come post TDS @ 10%. So I will pay the remaining tax while filing ITR. That will give me the exact tax to be paid and I wont get into IT refund hassle.

          I am assuming Advance tax is not applicable for income earned (read credited into account) after 15th March. Or is it that one has to forecast/speculate how much one could be earning and pay tax in advance and if the actual income is less than forecasted income, then claim refund while filing ITR?

          Thanks in advance.

  5. Karthik says:

    now you have crossed December 15, try to pay 100% of remaining tax before March 15.

    http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2005ITAct/section211.htm

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