Interest on self assessment tax

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abhijitshahane (Querist)
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01 July 2012 I have changed job twice in FY2011-12 and it lead to some complexities in tax deduction by my employers. As a result, less tax was deducted and I worked out tax on my own and paid Rs 95000/- as Self assessment tax on 30 March 2012. I have also paid Rs 3200 on 30 June 2012 as Self Assessment Tax.But Form16 xls of IT dept is shows Interest to be paid for 'deferment of Advance Tax(sec 234C). Am I liable to pay such interest as it is not advance tax but Self assessment tax which I have paid.

Amit

Amit (Expert)
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02 July 2012 HI,

In salaries employee cases , TDS is deducted every month hence we need not to pay advance tax . It is the responsibility of the employer to deduct tax every month.

But in your case appropriate TDS has not been deducted and hence onus is on to you to pay advance tax . So revenue authority is correct in levying interest on deferement of advance tax.

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)
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02 July 2012 Dear Friend,Section 210 of the Income Tax Act, 1961 deals with Advance Tax, if your tax liability in previous year exceed Rs. 10,000/- then you have to pay advance tax as per rules. Now in case of salaried personnel TDS has been deducted and hence they dont' required to pay advance tax. Now in your case as you said you are not able to deduct or pay proper portion of tax. Then the Income Tax Authorities are right in imposing interest on you. Thanks

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