Should I pay advance tax

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

Replies (20)
Quick Summary
This discussion explores whether an individual needs to pay advance tax on their Fixed Deposit (FD) income, estimated at around £15,000, when their employer initially didn't deduct tax. While some suggest paying advance tax by March 15th to avoid interest, others argue that it's not strictly mandatory for salaried individuals and that self-assessment tax at the time of filing the return might suffice, despite potential interest charges. There's also a suggestion to ask the employer to adjust TDS by including FD interest in March's salary.

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

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.

Some time advance tax is not allowed for salaried employee. So better to instruct employer to cut Tds by considering approximate FD interest
Better to go from employer through Tds ..You may also pay advance tax
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.
@ 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.
Pay advance tax

Pay advance tax before 15th March

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

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
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.

Pay advance tax now
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?

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