Can advance tax for FD interest be paid after March 31st

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  1. Guru Prasad K

    Guru Prasad K New Member

    I did not have funds to pay the advance tax for FD interest in March. But can I pay the due tax in April or will this have to wait for the time of return filing. Though I am late in paying the taxes by a fortnight, I would prefer paying now to avoid paying the interest for 3 months (since returns filing can happen in June only after i receive form 16 from employer)
  2. ZED

    ZED Well-Known Member

    Yes you can pay the tax now , but it won't be treated as advance tax. Still it will help you in reducing your interest liability since the rate of interest is 1% per month. Refer S.234B (applicable if advance tax paid is less than 90% of the assessed tax). There could have been TDS on interest on FD. Do consider that aswell.

    Also note that even a part of a month is considered as full month. Therefore, if there is already a delay of even a single day, interest will be charged for the full month. You can rather invest that sum at someplace and deposit the amount just before the date when next interest accrues.
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