1119(Tax Credit) Why there is no TAN number for availing advance or self assessment tax credit? Project - Make Knowledge Free Video Link - https://youtube/watch?v=e6eAXyYuIzY Case Methodology - Harvard Case Model Narration - By Amlan Dutta For previous year 2013 14 , i am resident Non senior Individual i am having salary income 1027185 and FD interest income of 63198 Rs .I had income from no other heads so my gross total income works out to be 1090383 Rs I had invested in provident fund under section 80 C 1 lac Rs ...so my total income works out to be 990380(approximate ) . As per applicable slabs , my tax turns out to be 131918 Rs So , do i have to pay this whole amount ...obviously no , the person issuing me salary must have deducted TDS ...the person (Bank issuing me FD interest income must have deducted TDS at source ... I check my tax credit statement and discover that the compnay person has deducted TDS of 118901 Rs against salary income under section 192 whereas bank has deducted no TDS ... I start wondering why and my mind takes me back to the day when Mehra uncle came to my house and started boasting to my dad Arey , bas jao ,aur bank main jama kar do form 15 G ---Bank TDS nahin kaata ...i was a fol enough to beleive him and had depoisted Form 15 G and like expected bank didnt deduct any TDS ...but was it right ? No ...form 15 G is a lower TDS application wherein applicant is declaring that since gross total income is below threshold limity , there will be no tax liability on taxpayer so decuctor is requested to deduct no TDS which , if it does , the applicant is again required to apply for TDS refund while return filing ! Anyways my GTI was 10.93 lakhs i.e far more than threshold , so i was wrong in submitting form 15 G But now to correct it , i have to declare interest income and pay taxes as per slabs I see my total TDS credit is available upto 118901 Rs whereas Tax liability as per slabs onb total income is 131918 Rs So , i pay this balance tax(13918-118901=13012 Rs ) well in advance using Challan 280 While availaing tax credit , for salary TDS i use the Salary TDS schedule where i represent the credit /collection available against comapny TAN registration number for my PAN For bank , i show tax credit of Nil Rs available against Bank TDS registrtaion for my PAN Noe, for Challan deposit , i dont use TDS schedule because here there is no deductor ...here i am depositng taxes to the bank ...so i need to mentuion bank BSR code ...when i pay money thbrough challan , i get a chalklan receipt which contains bank BSR , challan number , date and amount paid !All these details reflect in tax credit statement (26 AS) also and i am required to avail credit in return for such paid taxes using schedule IT ! This is the difference between availing tax credit on salary /non salary and tax credit on advance /sel;f assessment This is why tax credit on advance /self assessment implying income taxes that you have paid has no TAN column because there is no deductor and if there is no deductor person(company , bank , individual etc ), where is there the need for TAN registration ! Hope this helps, Cheers , Amlan Dutta
Posted on: Tue, 30 Dec 2014 03:39:06 +0000
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