Anomalies in the advance tax regime

There should be some provision for this. Meet your AO if possible. Similar situation in Capital Gains scenario is as expected. The advance tax in that case is payable after you have made gains.

was any TDS on salary being made by your employer and was it considered. while computing the income it will take into consideration the total income of

the year and accordingly calculate tax and the resultant interest if any

Unless expressly excluded like capital gains, total income during the year has be considered for interest purpose

Dear Jerry, I have been able to locate a document published by IT dept which exactly addresses your question. As per the document you don't have to pay interest for installments prior to opening the business.

https://www.incometaxindia.gov.in/tutorials/6-interest%20payable%20by%20the%20taxpayer.pdf


No levy of interest if shortfall in payment of advance tax is due to capital gains or winning from lottery, etc.

Interest under section 234C is not levied, if, the shortfall in payment of advance tax is due to failure to estimate the amount of capital gains or income referred to in section 2(24)(ix) (i.e. winning from lotteries, crossword puzzle, etc.) or income from a new business or income referred to in section 115BBDA (i.e., dividend received from a domestic company exceeds Rs. 10,00,000) and the taxpayer pays the required advance tax on such income as a part of immediate following instalments or till 31st March, if no instalment is pending. 

Thanks to all..

Special thanks to Mr.Neeraj