Must know points for tax payers - Fusion - WeRIndia

Must know points for tax payers

Must know points for tax payers

Advance Tax plays a crucial part in tax payment. It is a part payment of tax liability by an individual or business entity that has to be paid before the end of the financial year. There are some points that every tax payer must know about advance tax.

If you are a salaried employee, then there is no need for you to pay advance tax. This is because your employer deducts Tax Deducted at Source (TDS) from salary. If you have income apart from your salary, then you have to pay advance tax.

Other income that make you liable for tax are capital gains on shares or house property, interest on fixed deposits, winnings from lottery or races. One should calculate expenses and losses before paying tax.

You can pay taxes in installments which is helpful for several businessmen.

You can pay taxes through online portal of income tax department or by filling challan number ITNS 280.

If you have paid higher advance tax than what is necessary, then you will receive refunds of the extra income. You will also get an interest of 6 percent per annum on the excess amount.

At the same time, if you underpaid or missed the payment of advance tax, you will be charged an interest of 1 per cent per month by simple interest.

Senior citizen who are aged above 60 and do not have any income from business or profession are not liable to paying taxes.

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