Tax Consultation & Scrutiny

Financial year starts from 1st April and ends on 31st March (wherein there is income pertaining to the whole year or part of the year). Assessment year is the year immediately following the financial year wherein the income of the F.Y. is assessed.

To calculate income tax, include income from all sources. Include:

• Income from Salary including any benefit, allowance, amenity or perquisite obtained in addition to or in lieu of salary (salary paid by employer).
• Income from house property (any rental income after deducting interest paid on home loan)
• Income from Capital Gains on sale of capital assets(like property, share etc)
• Income from business or profession including any benefit, amenity, perquisite obtained in the course of such business or profession
• Income from Other Source( like Dividend Income ,Winnings from lotteries, crossword puzzles, races, games, gambling or betting).

TDS:-

• Tax Deducted at Source (TDS) is a system introduced by Income Tax Department, where person responsible for making specified payments such as salary, commission, professional fees, interest, rent, etc. is liable to deduct a certain percentage of tax before making payment in full to the receiver of the payment.

Advance Tax:-

• Advance Tax can be simply understood as an advance estimation of total taxable income and, thereafter, a presumptive calculation of the tax amount payable by the assesse for the relevant financial year.
• An assessee who is liable to pay advance tax is required to estimate his current income and pay advance tax thereon without having to submit any estimate or statement of income to the assessing authorities. In simpler words, it is payment of the income tax in equal parts throughout the year, rather than paying the lumpsum tax amount at the end of the year.

Advance Tax Liability is applicable on all tax payers, whether salaried, freelancers or businesses. In case of salaried tax payers, if the employer deducts tax at source or TDS , then there is no further need of payment of advance tax.

However, if such an assessee has any other income other than salary, then he/she is required to meet advance tax liability for such income. Such incomes may include capital gains on shares or house property, interest on investments, etc. after making appropriate deductions for losses, if any.

Yes, the excess amount will be refunded by cheque or direct credit into your bank account.