Do I need to pay interest to TAX?

POSTED BY Nayandeep Saha ON October 3, 2011 6:56 pm COMMENTS (2)

At the beginning of financial yr, when I need to declare the investments, I normally show investments in all the sections so that my tax becomes zero. I make this just to ensure that I get the whole amount without any tax deduction every month before actually paying the actual tax at year end. Does this enforce the Tax department to levy any interst to me?

 

2 replies on this article “Do I need to pay interest to TAX?”

  1. SG says:
    October 4, 2011 at 7:56 pm

    Hello,
    There would be no interest levied for the excess declaration that you make. Since you have declared your investments in such a way that the tax component is zero, ensure you have the proof for your investments. In case you fall short of the declared amount, you would need to pay tax on the taxable income(based on the tax slabs). There would be no penalty for this.

    Reply
    1. Nayandeep Saha says:
      October 5, 2011 at 5:43 pm

      Thanks a lot SG for confirming this.

      Reply

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