As per income tax act section 234C if tax due is more than 10000 (before TDS ) then every person (non corporate) have to pay advance tax in three installment. Many persons have a impression that 10000 Limit is to be checked after TDS deducted (if deducted by anyone) but as per income tax rules 10000 Limit is to be checked before TDS deducted (if deducted by anyone) .
Example
Total Tax due Rs 25,000/- and TDS deducted is Rs 20,000/- still the case will will be covered under interest of 234 C.
Total Tax due Rs 9,000/- the case will not be covered under interest of 234 C irrespective whether TDS of Rs 0 or Rs 9,000 has been deducted.
This also means if you have income of 1 lac over and above the basic limit, you can still pay the tax at one go at the year end without incurring any interest or advance payments.
Example
Total Tax due Rs 25,000/- and TDS deducted is Rs 20,000/- still the case will will be covered under interest of 234 C.
Total Tax due Rs 9,000/- the case will not be covered under interest of 234 C irrespective whether TDS of Rs 0 or Rs 9,000 has been deducted.
This also means if you have income of 1 lac over and above the basic limit, you can still pay the tax at one go at the year end without incurring any interest or advance payments.
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