Clarification on advance tax
This query is : Resolved
03 April 2015
Sir,
Suppose X being a salaried emplyee having income only from his salary, wants to pay tax through challan-280(as advance tax) in his assessment yr 2015-16.Does he need to pay interest u/s 234?Please clarify.
04 April 2015
My query has not been resolved yet
04 April 2015
You need not pay any interest. Only your employer will be required to pay interest for short deduction.
04 April 2015
Dear Nasim,
If the tax liability is more than 10,000, the he should have paid Advance Tax. If not paid, then he should pay the interest on it. However, it is the duty of the employer to deduct tax on it and pay it to the govt. He may intimate the employer regarding this. If your employer is a person liable to deduct tax at source, he will be deemed to be an assessee in default. So, intimate his employer and do what is necessary. Hope it is clear.
If the tax liability is more than 10,000, the he should have paid Advance Tax. If not paid, then he should pay the interest on it. However, it is the duty of the employer to deduct tax on it and pay it to the govt. He may intimate the employer regarding this. If your employer is a person liable to deduct tax at source, he will be deemed to be an assessee in default. So, intimate his employer and do what is necessary. Hope it is clear.
04 April 2015
Respected Sirs,Yet not cleared.Humbly I would like to put up the present scenario before you.About forty thousand teachers of government aided institutions(Madrasas) became liable to pay income tax in the last financial yr ie 2014-15 in Bihar.Most of them have no source of income other than salaries. Hence conceptually there is no question of advance tax.Some government officials suggested to use the TAN of District Planning Officer for deposition of tax.In short the teachers deposited their tax using Challan-280 before 31-03-2015.In course of time I sought advice of CAclubindia Experts. Respectable SEETHARAMAN JI in his post dated 29-03-2015 clearly suggested that each Head of aforesaid institution should have TAN for which they applied.What should they do further?Some teachers have not got their PAN.When should they deposit their tax?Please help.
05 April 2015
TDS is a mode of recovery. If the employer did not deduct tax at source, it is the responsibility of employee to pay tax computed on his total income. In this case the teachers can collect Form No. 16 from the District Planning Officer on whose tan the tax was deposited. The District Planning Officer should be requested to file form no. 24Q in due time, so that the tax shall be reflected in form no. 26AS and the individual employee get credit. The teachers who do not have PAN should apply for the same immediately. For those, who did not deposit tax should file their return of income within july and pay the tax thereon. If the unpaid tax is more than 10,000 the employee will be liable to pay interest. Otherwise not.
05 April 2015
Yes. Not only in Bihar. Almost at all regions of India, if a person liable to deduct TDS pays salaries to any person of RELIIOUS CONGRERAGTION, then he is liable to deduct TDS if it exceeds the threshold limit. So, here, he employer should hav to pay TDS. This is in line with a judgement at a high court. IT Dept has issued many sec 132 notices, even my client got on. So, if the employee has aleady paid, then he may obtain a certificate from a CA that the said income has been taxed and taxhas been aid so that the employer will be relieved from his duties. Bt the employer SHOULD obtain a TAN.
05 April 2015
Thanks for your description in detail.Please explain the abbreviation CA.
06 April 2015
Chartered Accountant.
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