02 March 2016
From your query, on back calculation it appears that the person is drawing a salary of Rs.77,500/- per month giving full effect of deduction u/s 80C. [Rs.1,50,000 divided by 12 months is Rs.12,500 monthly]. The liability to deduct TDS arises when the salary paid exceeds Rs.2,50,000/-. The TDS has to be deducted by the employer. Therefore the liability to deduct TDS only in July 2015. In case no TDS has been deducted in the first quarter, no certificate of deduction can be issued from TRACES.
As far as the assessee is concerned, the liability to pay advance tax arises only if the tax payable after adjusting all TDS / TCS is more than the deducted amount by Rs.5,000/-. Hence as far as the assessee is concerned, if his TDS covers his total tax, there would be no liability to pay advance tax or interest on the advance tax short paid.
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