962(Income tax ) Why is advance tax seeked by the government (Concept) Narration - By Amlan Dutta Video Link -https://youtube/watch?v=wiexRCgSYrc For the purposes of this tut , let self be the taxpayer Let the previous year under consideration be 2013 14 Let my income head be from FD interest income Say i get FD interest income from axis banks 10 lacs .I have no other income and do no saving under section 80 So my gross total income of 10 lacs translate to total income of 10 lacs Now , bank will deduct TDS as per TDS section 194 A at the rate of 10 % only i.e 1 lac whereas tax is applicable on me as per slabs applicable for the previous year 2013 14 i.e 1.33 lacs This means the revenue is due for 1.33 lacs from my side whereas i have credit available to my name of just 1 lac To match the balance credit i.e pay what is due to the government for the year 2013 14 , i need to pay thsi balance credit of 0.33 lacs in advance Like me , there are million other tax payers where the revenue is deprived of tax because of difference in TDS rates and tax application as per slabs ! Hopefully this makes sense , Humble regards , Amlan Dutta
Posted on: Thu, 18 Sep 2014 03:11:11 +0000