973 (Income tax) What are conditions for paying advance tax (Concept) Video Link - https://youtube/watch?v=jvDDtzq3trg Narration - By Amlan Dutta It is true that taxpayer owes to the revenue all taxes due for the previous year in the year itself However if the total tax liability doesnt exceed 10000 Rs , then in such case advance tax is not compulsory and in such case if assesse has not paid advance tax , then the penal interest under section 234 B and 234 C will not apply Say for example , taxpayers total income is 3 lacs for previous year 2013 14 , then as per slabs , tax applicable would be 10000 , but he would get a rebate u/s 87 A of 2000 Rs , if he is a resident (Because total income is less than 5 lacs , so rebate of 2000 Rs or taxes to be paid whichever is less will apply ) Clearly tax liability will be 8000 plus 3 % education cess i.e 8240 So clearly it is below 10000 Rs Here say, assesse has no TDS tax credit available i.e no TDS was done ....so he needs to pay of this taxes Even if he pays this taxes after the year ends , penal interest under section 234 B and C wouldnt apply which otherwise would had the tax liability exceeded 10000 Rs , Also note that senior citizens who have income not arising from business or profession are not required to pay advance tax Hope the concept is clear , Humble regards , Amlan Dutta
Posted on: Sat, 20 Sep 2014 02:29:16 +0000
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