Advance Income Tax Query

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This query is : Resolved

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This discussion addresses queries about Advance Income Tax, particularly concerning interest earned from Fixed Deposits (FDs) and investments in mutual funds. The user is seeking clarification on the exemption limit for savings interest and whether investing in mutual funds, especially those with a high debt component, alters the tax treatment compared to FDs. Additionally, the user requires assistance in understanding the correct calculation of Tax Deducted at Source (TDS) on their salary based on provided components.

D M

D M (Querist)
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11 December 2024 Hi Team,
I am currently in Tax Bracket of 30% and recently started investing in FDs and found came across where it says if you earn income apart from Salary and tax liability is more than 10000 i need to pay Advance tax.

I have found out that my Yearly Interest income will be less than 40000.I am opting out for new regime .

1. Do I get the 40000 exempt from savings Interest for age group between 0-60 Years? If not then If I invest in Mutual funds instead and don't redeem then do i still have to pay advance tax ?
2. I am trying to understand if my company is calculating the TDS rightly on my Salary .It has below components
Suppose
BASIC SALARY -100
HRA -50
CONVEYANCE ALLOWANCE-40
CAA -10
CPD -10
Deduction are
Provident Fund -16
TDS-20

How do i calculate my TDS based on above ?

Appreciate your help.

Thanks,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 December 2024 1 Interest such a case only Rs 10,000 exempt. Advance tax has to be paid for balance amount.
Tax payable only on redemption of mutual fund.
2 Ask your finance department they will help you with right calculation.

D M

D M (Querist)
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12 December 2024 Thank you sir. So Savings interest exemption under new regime is only for 10000 rs

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 December 2024 Welcome.
Yes ..
..

D M

D M (Querist)
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16 December 2024 I was looking into Equity Savings Schemes MF and one of the advisers was recommending me to Invest in Equity Savings Schemes with 80-90% in Debt Funds.But I was wondering that these are now after recent budget changes taxed at Income Tax Slab.

But he was insisting it is taxed on capital appreciation so will be less than your FD tax.

If I Invest in Debt Fund 100 with systematic withdrawal at 7% and in FD 100 at 7% . Can you let me know if the Tax treatment be same for both or will it be differently taxed?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 December 2024 It's same for both.
...

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