Income Tax Payment for TDS, Advance Tax, Self Assessment Tax and Penalties

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Advance Tax
ITR Penalty
Self Assessment Tax
Surcharge

The procedure of payment of income tax can be completed on the TIN-NSDL portal. It’s one of the major sources of revenue for the government. And it is how they can invest in developing infrastructure and maintain it. In India, the central and state-level government has a right to collect taxes.

How much tax one pays will depend upon how much they earn and what slab do they fall in. The basic exemption limit for Individuals and HUFs below the age of 60 years is INR 2.5 Lakhs in AY 2019-20.

The different types of income tax / income tax payments In India are given below:

Income Tax Rates for AY 2019-20
Each year income tax rates are introduced by the finance minister in the union budget. Income is taxed based on the category of taxpayer
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Income Tax Rates for AY 2019-20
Each year income tax rates are introduced by the finance minister in the union budget. Income is taxed based on the category of taxpayer
Read More

Income Tax Payment in the form of TDS

Tax Deducted at Source is a way to tax income when it is generated. so as to prevent tax evasion. TDS is applicable on payments like salary, interest, commission, brokerage, professional fees, royalty, contract payments, etc. Deduction of TDS depends on the rate (which varies by the nature of payment) prescribed by the Income Tax Act of India.

The Entity who is responsible to deduct TDS shall apply for TAN (Tax collection Account Number) and is liable to issue a TDS certificate. Deductor is also responsible for the TDS payment.

TDS Payment using Challan 281
A Deductor can make the payment of TDS or TCS online on through Challan 281. Learn more about it in this article.
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TDS Payment using Challan 281
A Deductor can make the payment of TDS or TCS online on through Challan 281. Learn more about it in this article.
Read More

Income Tax Payment in the form of Advance Tax

Advance Tax is a tax liability where a taxpayer pays its dues in installment in the same financial year. Anyone whose tax liability exceeds Rs 10000 is required to pay Advance tax. As of 2016-17 taxpayers under the presumptive taxation scheme will have to pay their due before 15th March. Advance Tax payments and calculation will depend on the nature of the taxpayer’s income and professional. For salaried individuals whose only income source is salary, they do not have to pay advance tax. Freelance and Professionals have to estimate their annual income before calculating their tax payments. Taxpayers can pay advance tax in one of two ways: Either They can pay it through advance tax challan or they can pay it using Net Banking Facility.

280 challan

Income Tax Payment in the form of Self Assessment Tax

Self Assessment Tax is tax liability computed by the taxpayer on its own and paid before filing IT Return. A taxpayer does not have to pay it if their actual dues are less than Advance Tax and TDS combine. Payment is done in one of two ways: Either they can pay self-assessment tax challan or they can do it through Net Banking facility.

Self Assessment Tax: Rule and Calculation
Any pending tax liability at the end of the financial year after calculating total taxable income and subtracting deductions & taxes paid is Self Assessment tax
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Self Assessment Tax: Rule and Calculation
Any pending tax liability at the end of the financial year after calculating total taxable income and subtracting deductions & taxes paid is Self Assessment tax
Read More

Surcharge: A Tax on Tax

A surcharge is an additional tax levied by a government on assessees whose income exceeds Rs 50 lakhs. The calculation of surcharge is on income tax and not the actual income. The rate applicable for surcharge depends on the policy for that particular assessment year.

Surcharge on Income Tax : Rules and Calculation?
A surcharge is an additional charge on Income Tax. It was introduced with a principal that the rich should contribute more by way of tax, as compared to the poor
Read More
Surcharge on Income Tax : Rules and Calculation?
A surcharge is an additional charge on Income Tax. It was introduced with a principal that the rich should contribute more by way of tax, as compared to the poor
Read More

Cess: A fundraising Tax

The government collects cess for a special cause like education, health, etc. And unlike other taxes mentioned above, it is collected for a particular period and might be altered or completely removed.

Indian Government collects different types of Cess Like Education Cess, Swachh Bharat Cess, Krishi Kalyan Cess, Infrastructure Cess, etc. The rate of the deduction depends on the financial policy for a particular assessment year.

Tax Penalties

With taxes comes penalties. The government collects interest on tax payment as a form of penalty from a taxpayer.  Each of the taxes discussed above has a particular due date and if assesses failed to pay till the prescribed due date there is a penalty.

Penalties on TDS

Late Filing Fee – Section 234E: If TDS is not filed after the due date then it attracts a penalty of INR 200 every day from the due date until it is filed by the taxpayer.

Interest – Section 201A: Failing to deduct TDS till the due date attracts interest.

Penalty – Section 271H: penalty of a minimum of Rs. 10,000 under this section.

Prosecution – Section 276B: imprisonment for a minimum of 3 months under this section.

What are the due dates for TDS filing?
The deductors/payers need to deduct TDS from specific type of payment
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What are the due dates for TDS filing?
The deductors/payers need to deduct TDS from specific type of payment
Read More

Penalties on Advance Tax

Non Payment of Advance Tax – Section 234B: Interest at 1% in case the taxpayer fails to pay 90% of their tax liability in same the financial year.

Delay in Payment of Advance Tax – Section 234C: if there is a delay in tax payment than interest @ 1% is applicable.

Penalties on Self Assessment Tax

Defaulting – Section 221(1): if a taxpayer fails to pay the tax within due date then the penalty amount decided by assessing officer needs to be paid by the taxpayer.

Paying Taxes in India

A taxpayer can either choose to pay taxes online or offline

Paying Tax Online

In order to pay tax online one has to go to TIN NSDL e-payment and select INTS 280 and enter the necessary details  

Pay Income Tax Online in India: A Step-by-Step Guide
Indian Government introduced eFiling of Income Tax online in September 2004. In spite of this, many individuals still find it confusing to Pay their Tax Online on the Income Tax Department Website
Read More
Pay Income Tax Online in India: A Step-by-Step Guide
Indian Government introduced eFiling of Income Tax online in September 2004. In spite of this, many individuals still find it confusing to Pay their Tax Online on the Income Tax Department Website
Read More

Paying Tax Offline

Visit the nearest bank branch and get the challan form i.e. form 280. Fill in the necessary details and submit the money and form to a bank official, for which one will get a receipt.

one can inquire about the status of income tax payment online by going to TIN NSDL e-payment and download challan status inquiry form.

FAQs

What is a surcharge?

A surcharge is an additional tax levied by a government on assessees whose income exceeds Rs 50 lakhs. The calculation of surcharge is on income tax and not the actual income. The rate applicable for surcharge depends on the policy for that particular assessment year.

What are the penalties under Advance Tax?

– Non Payment of Advance Tax – Section 234B: Interest at 1% in case the taxpayer fails to pay 90% of their tax liability in same the financial year
– Delay in Payment of Advance Tax – Section 234C: if there is a delay in tax payment than interest at 1% is applicable

What are the different types of penalties under TDS?

– Late Filing Fee – Section 234E: If TDS is not filed after the due date then it attracts a penalty of INR 200 every day from the due date until it is filed by the taxpayer
– Interest – Section 201A: Failing to deduct TDS till the due date attracts interest
– Penalty – Section 271H: penalty of a minimum of Rs. 10,000 under this section
– Prosecution – Section 276B: imprisonment for a minimum of 3 months under this section

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