Advance tax liability if tds is regularly paid

18296 views 2 replies

Rajat

manager

42 Points Posted on 27 July 2013

Hi Experts,

I earn salary from a job and also have additional income(rent) from two properties. TDS is regularly deducted from my salary. From this yerar onwards, my tenants will deduct the the TDS from my rent very month and will pay me the rent post deduction.

My question is should I pay advance tax if my TDS from all sources of income is getting deducted ervery month ? The reason i ask is that I don't want to pay penalties arising from section 234 clause when i file my tax next year.

Rajat

Replies (2)

SAURABH NENE

Chartered Accountant

226 Points Posted on 27 July 2013

You will have to estimate your income for the year and calculate tax on it. then deduct the expected tds. If net tax payable is grater than Rs. 10,000/- ou will have to pay advance tax.

TDS on your salary will be deducted as per slab rates applicable to you. However, TDS on rent will be deducted @ 10%. If your total taxable income falls in 20% or 30% slab, then you will have to check your liability for advance tax as above.

Mihir

Wealth Manager

5293 Points Posted on 27 July 2013

If the place you are letting out is owned, then the rent will be income from house property, wherein you shall get 30% deduction. There shall be a leave and licence agreement for rent which is usually for 11 months. So you can calculate how much rent is likely to be receiveable for the financial year. You have the option of showing other incomes to your employer and ask to deduct TDS at a higher rate. And also check the deductions under 80C.