Paying tax after changing employer - Urgent

Others 720 views 9 replies

Hello,

I changed my employer in January 2014. I had not reported previous employer income to my current employer and so no tax was deducted by the second employer. My previous employer had paid tax (TDS) of Rs. 7857. Now i have computed both incomes together and I have a to pay Rs 20,745 extra as tax liability. How should I pay this liability ? As advance tax or as Self Assesment Tax ? Would I be inviting interest if I pay as advance tax as due date is over ? if so how much interest to be paid ?

Replies (9)
If final tax liability (net of TDS, advance tax, rebate etc etc) is exceeding Rs 10k, den advance tax prov applies . . . . Since your tax liability is exceeding limit, better you pay advance tax.. Tax paid before 31st march, is treated as advance tax . . . . Interest u/s 234 A, B, C is applicable.. Calculation of it is difficult to explain here .. Better you download excel file of calculation from Internet

Thanks for the reply. I will pay advance tax. Can I pay this tax even after the deadline of 18th March ?

Tax paid before 31st march will b treated as advance tax.. But main thing is that this date is only for that income which is earned after 15th March. . . . . So, finally you do one thing.. Pay remaining tax now with interest.. In challan, show it as advance tax . . . . However, interest will b lesser since calculation will start from January 14 since your new income is starting from dat date

Thanks for the reply. I will pay Rs 20,745 +interest with challan as advance tax tomorrow itself. i hope that is what you meant in your reply.

 
Yes.. That's same i meant

I paid the amount oline today morning and got the receipt with challan and bsr number. but the amount is not credited on my 26AS till now. Any idea how much time it takes to credit there ?

Dear sir 

it will take a week time for updation. Make sure you have calculated your taxes correctly. (you can use income tax calculator available on income tax site)

Regards 

what is difference between the terms refund and rebate.....refer Indiataxfin.com

there are three things as given below:

 

1. EXEMPTIONS   : Certain amount exempt from individual component of income like HRA, Conveyance allowance etc that is called exemptions.

 

2. DEDUCTIONS:  the amount deductable from GTI like 80C TO U

 

3. REBATE:  The rebate available from Tax liability like rebate u/s 87A


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