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    Presentation ON TDS Advanced Tax Self Assesment Tax

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    Vaishali Chouhan
    The document discusses TDS, advance tax, and self-assessment tax. TDS refers to tax deducted at source, where a person making payments deducts tax from the payment. Advance tax is paid in installments throughout the year based on estimated annual tax liability. Self-assessment tax is any remaining tax paid before filing returns after accounting for TDS and advance tax.

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    Presentation ON TDS Advanced Tax Self Assesment Tax

    Uploaded by

    Vaishali Chouhan
    12 views15 pages
    The document discusses TDS, advance tax, and self-assessment tax. TDS refers to tax deducted at source, where a person making payments deducts tax from the payment. Advance tax is paid in installments throughout the year based on estimated annual tax liability. Self-assessment tax is any remaining tax paid before filing returns after accounting for TDS and advance tax.

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    The document discusses TDS, advance tax, and self-assessment tax. TDS refers to tax deducted at source, where a person making payments deducts tax from the payment. Advance tax is paid in installments throughout the year based on estimated annual tax liability. Self-assessment tax is any remaining tax paid before filing returns after accounting for TDS and advance tax.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    12 views15 pages

    Presentation ON TDS Advanced Tax Self Assesment Tax

    Uploaded by

    Vaishali Chouhan
    The document discusses TDS, advance tax, and self-assessment tax. TDS refers to tax deducted at source, where a person making payments deducts tax from the payment. Advance tax is paid in installments throughout the year based on estimated annual tax liability. Self-assessment tax is any remaining tax paid before filing returns after accounting for TDS and advance tax.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 15

    PRESENTATION

    ON

    TDS
    ADVANCED TAX
    SELF ASSESMENT TAX
    TDS
    TAX DEDUCTED AT
    SOURCE
    ABOUT TDS

    •
    TDS was introduced with an aim to collect tax from the very source of income

    • A person (deductor) who is liable to make payment of specified nature to any other
    person (deductee) shall deduct tax at source

    • The deductee from whose income tax has been deducted at source would be entitled to
    get credit of the amount so deducted
    RULES FOR TDS

    1- point of time when TDS has to be deducted at source


    In the following cases, taxes deducted at the time of payment –
    • salary
    • winning from lottery / cross-word puzzle, horse race

    2- At the time of payment or the at the time of giving credit to the recipient in
    the books of payer, whichever is earlier
    EXAMPLE

    • If the nature of payment is professional fees and the specified tax rate is
    10%. ABC Ltd makes a payment of Rs 40,000/- towards professional fees
    to Mr. X, then ABC Ltd shall deduct a tax of Rs. 4,000/- and make a net
    payment of Rs. 36,000/- (40,000/- deducted by Rs. 4,000/-) to Mr. X. They
    will directly deposit the amount of Rs. 4,000/- deducted by ABC Ltd to the
    credit of the government.
    ADVANCED TAX
    WHAT IS ADVANCE TAX?

    • Also known as earn tax

    • Advance tax is the amount of income tax that is paid much in advance rather than a lump-sum
    payment at the year-end

    • Advance tax is the income tax paid in advance for the income earned in a particular financial year
     
    • Advance tax is to be paid in installments as per the due dates decided by the income tax
    department
    HOW IS ADVANCE TAX PAYABLE

    On or before June 15 of the -


    PY
    On or before September 15 of Up to 30% of advance tax
    the PY payable

    On or before December 15 of Up to 60% of advance tax


    the PY payable

    On or before March 15 of the Up to 100% of advance tax


    PY payable
    WHO SHOULD PAY ADVANCE TAX?

    • As per section 208 of the Income Tax Act 1961,


    every person whose estimated tax liability for the year is more than or equal to `10,000 is liable to pay advance
    tax
    Advance Tax Payable= Tax payable- TDS

    • Those who are excluded from paying advance tax are


    -senior citizens who are the age of 60 years or more and whose income is not chargeable under the head ‘
    Profit and gains of business and profession’ are not liable to pay advance tax.
    • Interest is charge under section 234B and 234C @1% p.m or part of the month

    • Int 234B is for non payment of advance tax or payment of tax of an amount less than
    90% of assessed tax before 31st March.

    • 234C is for deferment of installment of advance tax beyond the due dates
    - The interest liability would be 1% per month, for a period of 3 months, for every
    deferment.
    Q. 1Tax payable 25000, TDS 5000.
    15.4.18 -1000
    20.5.18 -1500
    10.9.18 - 2000
    10.12.18 – 3000
    15.3.18 – 2500
    31.3.18 – 10000
    Total Nil

    Due Date Tax Payable Tax Paid Shortfall Interest


    15.6.18 3000 2500 500 (3%) 15
    15.9.18 9000 4500 4500 (3%) 135
    15.12.18 15000 7500 7500 (3%) 225
    15.3.18 20000 10000 10000 (1%) 100
    SELF ASSESSMENT TAX
    SELF ASSESSMENT TAX

    •Self Assessment tax means any balance tax paid by the


    assessee on the assessed income after taking TDS and
    Advance tax into account before filing the Return of income.

    •Self-assessment tax is paid for a particular financial year-end.


    DIFFERENCE BETWEEN

    Advance Tax Self-assessment Tax


    • Self-assessment tax is tax paid
    • Advance Tax is any tax paid by an assessee after the end of
    before the end of a fiscal year the financial year without
    receiving a demand letter. 
    • The due date of paying advance
    • There is no due date associated
    tax is based on the amount of tax
    with the payment of SAT.
    amount payable.
    • IT Returns must be paid by • The person must pay tax before
    everyone with an annual income the end of the assessment year
    of more than Rs.10000. before filing the IT Returns.
    PRESENTED BY:-

    ANJALI BIYANI
    VAISHALI CHOUHAN

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