991 (Income tax ) Why salaried people dont have to pay Advance Tax? Video Link - https://youtube/watch?v=Cvivv0Tw97g Narration - By Amlan Dutta Methodology - Harvard Case model Say for previous year 2013 14 i just have salary income . The question here is why i am not liable to pay advance tax This is because the salary TDS is as per income slabs No other income head enjoys TDS at such rates For example if i have salary income of 10 lacs for PY 2013 14 and let us assume that i have no other income and have invested in no eleigible insytruments under section 80 , this translates to a taxable total income of 10 lacs on which as per slabs my tax would be 133900 Now since this is salary expense for my employer , they are supposed to deduct TDS before they hand me the remaining salary remittance They deduct TDS also 133900 ...why , because sectyion 192 guides to dedut TDS as per income slabs This is unlike other expense heads where the TDS are marked in percents.... So since tax applicable is as per income slabs and since TDS has already been done as per income slabs i,e 133900 applicable as per slabs has already beend deducted by the employer deductor as under section 192 , so there is no further need of paying advance tax Hope fully thsi helps understand this concept ! Humble regards , Amlan Dutta
Posted on: Fri, 03 Oct 2014 07:38:07 +0000