babugr (dgm) (509 Points)
12 March 2015I am retired in 2014, June (60 years). I have recd. all my retiral benefits and distributed them in FDs, the interest earned on FDs is taxable, kindly clarify whether I should pay the tax now in March as advance tax or should I pay before filing of ITR in July'15, as my form 16 would be available in last week May'15 only. will there be any interest on tax not paid on FD earnings before March'15.
thanks
GR Babu
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 12 March 2015
If FD is taxable, bank would deduct tax @ 10%. If your taxable income during the year falls within 10% slab of IT, no need to pay advance tax else you may pay advance tax to avoid interest liability, even though you receive form 16A in May from Bank
babugr
(dgm)
(509 Points)
Replied 13 March 2015
thank you for your quick response. I fall in 30% slab and being a sr. citizen I may get advantage of advance tax relaxation. my query is that my TDS from the employer is already taken care of, however my total tax liability is around 2 lacs higher than what is deducted by employer as per my calculation, whether I should pay now before 15th March or in July before ITR filed.
thanks
Babu
Rajesh
(Former Director DRDO)
(114 Points)
Replied 13 March 2015
Senior citizens not having any business income can pay self assessment tax at the time of filling tax return. No need to pay advance tax, no interest liability. Please read following article para 3: https://www.charteredclub.com/6-tax-benefits-for-senior-citizens/
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