Who pays advance tax?

All salaried employees whose income, other than salary, comes from rent, capital gains or interest income.

People involved in business and self-employment also have to pay advance tax.

Senior citizens above 60 years of age, whose income is not from business or profession, are exempted from advance tax.

Salaried employees whose total tax liability is deducted through TDS (Tax Deducted at Source) are not required to pay advance tax.

When is advance tax to be paid?

June 15 – 15% of total tax liability

September 15 – 45% of total tax liability (including first instalment)

December 15 – 75% of total tax liability (including first and second instalment)

March 15 – 100% of total tax liability

How to make payment?

E-payment is mandatory for corporate taxpayers and those taxpayers whose accounts are required to be audited under section 44AB.

Other taxpayers can also make payments online, which will save time and simplify the process.

Penalty for not paying advance tax

If a taxpayer fails to pay the advance tax on time, he or she will have to pay interest under sections 234B and 234C of the Income Tax Act.

Under 234C, if someone does not pay the tax on time, 1% monthly interest will be charged on the outstanding amount.

Under 234B, if 90% of the total tax is not deposited by March 15, interest will be charged on the outstanding amount at the rate of 1% per month till the entire tax is paid.

What to do?

If you have not yet paid advance tax, make your payment before the March 15 deadline to avoid interest and penalty.

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If you are a salaried person and do not do any side business, then you have to fill ITR-1 form. What are the other conditions for filing ITR for a salaried person and what 5 things should they keep in mind the most. We are giving you information about this.

If the annual income of a salaried person is less than Rs 50 lakh. Also, if there is income from sources like property, family pension, farming (up to 5 thousand maximum) and FD, then they should fill the ITR-1 form. It is important to note that income from business and profession will not be filled in the ITR-1 form. Apart from this, if you have capital gain or income from more than one property or have earned money from things like lottery or horse racing, then also you should not fill the ITR-1 form. Apart from this, you should keep some other things in mind, the details of which we are giving you.

Also Read: Fixed deposits: Top 6 banks offer highest interest rates on their 5-year FDs

Where do you work?

Before filing income tax return, it is important to note in which sector you work. For example, if someone works in the central government, then his salary details are different. Similarly, if you are a state government employee or work in the private sector, then the salary break-up is different and the tax exemption you get also depends on this.

First gather the necessary documents.

You will get Form-16 from your employer to file ITR. Apart from this, download the Annual Information Statement (AIS). Keep the rent slip ready to claim HRA and also keep the receipt of other investments with you. You do not have to upload these documents but keep them ready for the need.

Make sure to match the tax.

Tax of salaried people is usually deducted from their salary in the form of TDS or TCS, however, you must match this tax with other documents. For this, you can assess the actual tax with the help of documents like AIS and 26AS. If there is any mistake, you can also correct it with the help of these documents.

You can file the previous return.

The income tax department also gives the salaried people the opportunity to file the returns of the last 2 years. If you forgot to file any return in the last 2 years or there is some mistake in it, then you can file the updated ITR (ITR-U) along with filing the missed return.

Do this for refund

After filing ITR, you have to keep some things in mind to get your refund quickly and easily. First of all, check whether your Aadhaar and PAN are linked or not. Apart from this, it is also necessary to verify the bank account. It is most important that you choose the right ITR form. Even if it is wrong, then fill the revised ITR in time.

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Form 16 is the most important document for salaried employees in India. It is provided by the employer to the employees along with details of Tax Deducted at Source (TDS) and salary component. As per the Income Tax rules, every employer has to issue Form 16 to the employees having income subject to TDS. However, there may be instances of non-issuance of Form 16. However, if Form 16 is not provided to a person, he can still file Income Tax Return (ITR).

Form 16

It is possible to file ITR without Form 16 as well. It has been confirmed by tax experts that it is possible to file Income Tax Return (ITR) without Form 16 for the assessment year 2023-24. While Form 16 is generally used by salaried employees to simplify the process. In the absence of Form 16, individuals can file their ITR using other documents like payment slips and Form 26AS along with investment records to claim the deduction.

How to file ITR without Form-16 for salaried individuals?

– Firstly all the salary slips or salary slips from the concerned financial year should be collected. These slips should contain comprehensive details of salary, allowances, deductions and other income components.

Second, the taxable income should be computed by considering all the components of salary including basic pay, allowances, perquisites, bonus etc. using the information obtained from the pay slips. Relevant deductions such as house rent allowance (HRA), standard deduction and professional tax should be deducted to arrive at taxable income.

Individuals should review their bank statements to identify any additional sources of income such as interest income, dividends, or any other form of income beyond their salary. These amounts should be included in computing taxable income.

Lastly, it is important to verify Form 26AS, which can be accessed through the Income Tax Department’s website. Form 26AS provides a consolidated statement of all taxes deducted and deposited against the PAN of the individual. It is necessary to ensure that the TDS details mentioned in Form 26AS match with the computed income details. If any discrepancies are found, the deductor, whether employer or bank, should be contacted to remove the discrepancies.

By following these steps and providing necessary supporting documents individuals can successfully file their ITR without relying on Form 16. Once the return is filed, remember to e-verify it. ITR filed without e-verification is incomplete and will not be considered for processing through the Income Tax Department.

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