Advance tax liability

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NASIM AKHTAR

NASIM AKHTAR (Querist)
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03 April 2015 Sir, Whether salaried employees are liable to pay advance tax?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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03 April 2015 Salaried Employees are not liable to pay advance Tax on their income from Salary since TDS (Which is also a form of Advance Tax) is deducted from them u/s 192.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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03 April 2015 Yes. Advance tax liability applicable for Salaried employee also. how ever for arriving advance tax liability you can consider the TDS deducted from employer also before payment of tax

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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03 April 2015 Sanjay ji. Since the advance tax provision applicable to all the cases. not given exemption for any one. sec.208 applies for the tax exceeds Rs.10000. so my view is differ

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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03 April 2015 Ramesh Ji

Advance Tax is applicable for Income Other Than Salary.

Please note that in case of salaried employees, the advance tax liability is to be computed on the income other than salary income. TDS deducted by the employer is not to be adjusted against this liability.

See Link: https://finotax.com/income-tax/intt234

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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03 April 2015 Thanks for the healthy discussion.

The extract from the section below:

[Conditions of liability to pay advance tax.
208. Advance tax shall be payable during a financial year in every case where the amount of such tax payable by the assessee during that year, as computed in accordance with the provisions of this Chapter, is 97[ten thousand] rupees or more.]

But practically as you told since the TDS deducted from salary, advance tax question may not raise for salaried case

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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03 April 2015 Thank you Ramesh Ji. It always knowledgeable discussing with you.

Seen the section. No specific exemption is there under 208. But you would agree conceptually no advance tax to be paid by Salaried Employees on Salary Income. It is the liability of employer to deduct TDS u/s 192.

Ref: Uttarakhand High Court decision in the case if DIT V. Maersk Co Ltd (2011) 198 Taxman 518

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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03 April 2015 Yes, ofcourse I too agree your view. Conceptually advance tax requirement will not arise for Salaried employee.

Thanks.

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