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Should I pay advance tax

Ram K (NA) (216 Points)

08 March 2022

Dear sir/madam.

My employer did not deduct any tax until jan-22. In feb-22 I submitted all investment proofs and now employer says you are not in tax bracket. However when i add my fd income to the total salary income i find that I will hv to pay about 15000 as income tax.

Is it required now to pay it as advanced tax before 15 march or can i simply pay it as self assessment tax at the time of filing return some time in jul-22.

amount is small so i don't know if i need to pay now.

Thanks

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20 Replies

CA. Abhilash Krishnan P (Chartered Accountant) (529 Points)
Replied 08 March 2022

If you have more than 10000 tax liability it is mandatory to pay tax in advance to avoid interest

1 Like

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 08 March 2022

If it is possible then request your employer to include FD interest under any other income reported by employee .

And instruct them to deduct Tds under salary head for March.

It may be adjusted in ITR

4 Like

Ram K (NA) (216 Points)
Replied 08 March 2022

thanks a lot for your answers. i think then i better pay advance tax before 15 march. While i can ask employer to add fd income but it's approximate. so if there's data mismatch between form16 and actual itr i know it dept raises queries before approving your itr. this way i think i will be able to keep my form 16 clean. hope this is a better option that i pay tax now as advance.

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 09 March 2022

Some time advance tax is not allowed for salaried employee. So better to instruct employer to cut Tds by considering approximate FD interest

3 Like

CA Surya Sekar (CFO ) (1347 Points)
Replied 09 March 2022

Better to go from employer through Tds ..You may also pay advance tax

2 Like

sabyasachi mukherjee (26057 Points)
Replied 09 March 2022

The querist has asked for the advice but he has not yet disclosed the total income.tax whatever he pays is a self assessed tax.If the entire FD was not earned in that year then what's the utility of disclosing in that financial income. First ascertain that. If the querist is certain about that his income will attract tax he can pay online tax.

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 09 March 2022

@ Ram K,

Hope you have already estimated the total income and balance tax liability is 15000/- on additional income .

So there is no ambiguity on this . You may request your employer cut 15k from March 2022 salary.

vishnu bandla (160 Points)
Replied 09 March 2022

Pay advance tax

2 Like

Sumit Bagra (Practising Chartered Accountant) (64 Points)
Replied 09 March 2022

Pay advance tax before 15th March

CA Puja Sharma (Chartered Accountant) (4874 Points)
Replied 09 March 2022

It is better to pay advance tax to save the interest charges which you will have to pay later on at the time of filing of IT return

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 13 March 2022

There is an option given to employee to declare other income like interest , house rent etc through form 16..

If employer deduct and pays then burden may be reduced

1 Like

JJJ (Need help) (673 Points)
Replied 13 March 2022

Originally posted by : Eswar Reddy S
	Some time advance tax is not allowed for salaried employee. So better to instruct employer to cut Tds by considering approximate FD interest

That is not correct. The tax department is always going to take your money, in whatever form it is given to them!

But typically employers don't consider the tax you may have paid on your own, and determine the deduction based on the income they have paid you and the investments / expenses you have incurred that reduce the tax burden.

You can always ask them to deduct more if they're agreeable, but usually they won't deduct less.

Samantha J (1236 Points)
Replied 19 March 2022

Pay advance tax now

sabyasachi mukherjee (26057 Points)
Replied 19 March 2022

Originally posted by : Eswar Reddy S
	If it is possible then request your employer to include FD interest under any other income reported by employee .And instruct them to deduct Tds under salary head for March.It may be adjusted in ITR

WHY IT MZY BE ADJUSTED IN ITR?