Advance tax vs Self Assessment tax

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  1. KUTTS18

    KUTTS18 New Member

    My mom was filling IT return with nil tax till last year (<3 lakh). But on on Nov 28th my father died and the interest on FD's of my dad has made her income in taxable bracket (> 3 lakh).

    Now before 31st March 2016, should I pay the tax as advance tax or self assessment tax?

    Please advice as we are nearing 31st March.
     
  2. V K Khanna

    V K Khanna Active Member

    In case your mother is a senior citizen, she is exempt from payment of advance tax. She can discharge her tax liability at the time of filing the return of income. Option available to her for full and final settlement of tax will be ' self assessment tax'.

    If she is not a senior citizen, tax option for payment before 31st March 2016 will be termed as 'advance tax'.
     
  3. KUTTS18

    KUTTS18 New Member

    Thank you. My mom is 63 yrs. So I guess I can pay amount as self assessment tax.

    Can I pay this SA tax this March itself?

    Also my dad's FD were closed on Dec 21st. Is the interest earned from that FD taxable as part of mom's income?
     
  4. V K Khanna

    V K Khanna Active Member

    You have time till 31st July 2016 to file tax return and discharge your tax liability without levy of interest.

    As a nominee of FD ( I presume ) or the legal heir, tax liability of interest income will have to be paid by your mother.
     
  5. KUTTS18

    KUTTS18 New Member

    Could please advice on the correct ITR form if my mom has income ONLY from family pension and FD interest?

    Also can legal heir file IT return only through Income Tax Dept.’s Website? Can they use any other site such as cleartax, taxspanner etc for filing return?
     
    Last edited: May 26, 2016
  6. ZED

    ZED Well-Known Member

    ITR-1 would work.
    The Income from FD would belong to your father till 28th Nov and thereafter, it would accrue to your mother.
    Was there any Tax deduction from interest from FD?
     
    Last edited: May 26, 2016
  7. KUTTS18

    KUTTS18 New Member

    Thanks
    Since we submitted Form 15h, no tax was deducted from FD interest.

    Also
    1. In IT return form, where do we put deductions under 'Section 57(iia) of the Income-tax Act, 1961'? I couldn't find any fields related to this in ITR 1 (SAHAJ) (Ref: http://incometaxindiaefiling.gov.in/)

    2. I could see that the interest from FD quoted in Form 26AS is actually less than what we have originally received (based on bank credit statement). So when we file return, which amount should be used, the actual amount received or the amount recorded in Form 26AS? Would there be any issue due to this mismatch?
     
    Last edited: May 26, 2016
  8. ZED

    ZED Well-Known Member

    You should show it net of deduction.

    This point need to be considere, try to find why there is a variance
    Choose the income received if it was higher as its easily traceable aswell.
     
  9. KUTTS18

    KUTTS18 New Member

    When i contacted the bank, the manager said "No problem will arise as long as the amount in ITR1 is equal or greater than the amount recorded in Form 26as." Is that true?
     
  10. ZED

    ZED Well-Known Member

    Yes, you can say that.
     
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