Hi,
This topic would certainly be a very unique post in this forum and would be a little difficult to answer even for the experts, but I do hope I would get a proper answer for my query here.
I changed my job twice during the previous financial year. I was part of company X from Apr'11 till December' 11, was an employee of Org Y from Jan 2012 to Feb 2012, and changed my company again to Org Z in the month of March' 12. Because of this TDS deduction from my companies was not smooth, and it has created a lot of confusion regarding the interest calculation of the delayed tax payment.
As I was a part of Org X till Dec, 2011 hence TDS deduction was smooth till December' 11. But after I changed my companies TDS deduction has not been done and I had to pay the residual amount of tax on my own.
Following is a rough calculation of my salaries + bonus earned during previous financial year:
Taxable Income from Org X (Tenure Apr' 11 - Dec' 11) - 5.5L (aprx), TDS paid 45K.
Additional taxable Income from Org Y (Tenure Jan' 12 - Feb' 12) - 2L (aprx), TDS paid 0.
Additional taxable Income from Org Z (Tenure Mar' 12) - 4.2L (aprx), TDS paid 0.
So the total (tax + edu cess) liability is 2.1L (Apprx), hence I made an additional tax payment of 1.25L in the month of April' 12 and rest 40K in the month of July' 12, so that the pending tax liability becomes NIL.
Now the question I have is: As instead of paying the TDS I paid the cumulative tax for the salary earned during Jan - Mar, in the month of April and July, hence how the interest will be calculated on the tax component incurred during this phase? And during caculating the interest (simple interest of 1% per month) do I need to add all the 3 Org's salary together and need to divide it in flat 30/30/40 percent's due date, calculate the delay incurred and then calculate the interest on a prorata basis? Or as I had not delayed the tax payment till Dec'11 hence the simple interest amount will be calculated from the month of Jan'12 as per my earning for the rest of the 3 months, on a prorata basis? As more than half of my previous year's earning are from the last 3 months of previous financial year hence I hope that I need not pay the interest calculated on the delay incurred on a flat 30/30/40 percent of the TOT income due date basis!! Please advise.
Many Thanks and Best Regards.
CAclubindia
