Interest levied if Advance tax paid on 31st March

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  1. Subhasis

    Subhasis New Member

    Hi,

    Will there be interest chargeable on advance tax paid on or before 31st March. The situation is as follows: Assume that one changes the job toward the end of the financial year (sometime in Feb) and by this time the person is unable to update previous income detail in the new organization. The tax deducted by the new organization is lower than the actual tax payable. Therefore he/she pays advance tax (by calculating appropriately based on the total income) in Feb and keeps the account updated. However, the tax on March income can only be paid once the salary for March is disbursed. In that case the earliest date of payment of advance tax would be the last working day in March (likely to be 31st March). The question here is - as the deadline for payment of advance tax is on 15th March and the person pays the tax on 31st - will there be interest on the tax payable (for the earning of March)?

    Thanks in advance,
     
  2. Yes, you can pay the Balance Tax by 31st March

    As already a major chunk of your income tax payable would have already been deducted in the form of TDS, only a small minor interest would be levied which would be negligible.
     
  3. Subhasis

    Subhasis New Member

    Does that mean the interest is applicable on the tax amount paid between 16th March to 31st March (for the salary of March)?
     
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