Advance tax or self-assessment tax - 80yr. old pensioner

Tax queries 190 views 6 replies

D Inder

Retired

38 Points Joined July 2015

I am a senior citizen and a pensioner. I will be filing my income tax return electronically (e-filing through income tax department website).

My queries:

For the assessment year 2017-2018, taking TDS on both pension and interest income, and two Advance Tax installments (that I paid in September 2016 and December 2016) into consideration, I still have outstanding tax liability. Let's assume this amounts to INR 10K!

When paying this INR 10K, using Challan / ITNS 280 either in an authorised bank branch or online (through https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp), do I check "Advance Tax" or "Self-Assessment Tax" option?

My understanding is that the advance tax is the tax that you pay in the same "financial year" as the income being taxed. That is, for the assessment year 2017-2018, advance tax could have been paid only up until 31-March-2017!

But since the (tax) financial year has ended, and I now need to pay this (oustanding) tax liability before I can e-file my IT return, I should select the "Self-Assessment Tax" option and NOT "Advance Tax" option.

Please confirm if my understanding is accurate.

Or should I select "Advance Tax"? Or it really doesn't matter which of the two options I select?

Thanks in advance.

regards

Replies (6)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

210554 Points Joined July 2016

"I should select the "Self-Assessment Tax" option"

Yes Sir, you are correct........

D Inder

Retired

38 Points Joined July 2015

Thank you.

I just paid the outstanding tax using the online facility.

Any idea how long does it take for the payment to be reflected in my records on the e-filing portal of the IT department?

D Inder

Retired

38 Points Joined July 2015

On Thursday, I paid the outstanding tax liability as self-assessment tax using the online payment facility under challan / ITNS 280.

By when can I expect the payment to get reflected on Form 26AS on the TRACES website? Any idea?

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

210554 Points Joined July 2016

Usually 3 to 5 working days.

D Inder

Retired

38 Points Joined July 2015

Thanks Dhirajlal Ji.

Another clarification I wanted .... hopefully this will be the last one on the topic

Assuming the tax laibility is INR 1030 comprised of tax payable INR 1000 and cess ( @ 3%) INR 30.

When paying online, I did not select 1000 and 30 separately under Basic Tax and Cess respectively, but mentioned 1030 as Basic Tax and left all other fields as 0.

Will this be a problem?

Unfortunately, I saw it mentioned on a couple of websites that the one could mention the whole amount (including cess) against "Basic Tax" and leave other options (e.g. cess, surcharge, etc.) as 0. And I followed the same without ascertaining beforehand whether the advice given on the websites was correct or not.

BW.