Understanding advance tax for salaried individuals

NaviN (Consultant) (120 Points)

06 March 2017  

Hi. Googling for "Advance tax" leads to a lot of complex information and I am still confused.

 

Hope I could ask questions one by one and receive answers that would make things clear to anyone searching.

 

Question 1: 

I understand that I dont have to pay tax for any income for which TDS is already deducted? So if my employer deducts TDS from my salary and the bank deducts TDS from my Fixed and Recurring deposits, and if I have no other source of income or capital gains, then I assume I wont have to pay advance tax?

But if the annual savings interest from my bank accounts is Rs.10001, then I would have to pay advance tax?

 

Question 2:

When calculating how much advance tax to pay (on March 10th), do I calculate based on the Rs.10001 or do I calculate based on salary+FD+RD+10001? 

 

Question 3: 

Is there a penalty if I dont pay advance tax in June, Sept etc but I pay the tax before March 15?

 

Question 4:

Is there an ITR form for advance tax or do we directly go to the challan page and directly enter the amount?

 

Question 5:

Is it worth not paying the interest? If I dont pay advance tax and instead invest that money in a mutual fund, would I stand to make a little more money than the money lost in paying the penalty when filing ITR in July?