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Which prolific Australian bastman retired in early 2009?

How to pay Income-Tax ? - for a RETIRED person?

  • I got retired during last year (2009-10). With effect from financial year 2010-11, my income will be trough Pension and Interest (from Banks, Post office etc.). I have submitted form 15G at all places paying me interest for not making any TDS. My proposed income for the next income year (I.Y.2010-11) will be in the taxable range. Now my query is: 1. Can I pay Tax quarterly by challans? What this tax will be called – “Advance Tax” or “Self-Assessment Tax” or anything else? Which No. Of Challan should I use? e.g. 280 or 281 or any other? When should I pay this tax during the year? 2. Can I pay Full Tax amount at a time in the last month of the year (i.e. during 1 st to 31st March-2011)? 3. If payable Tax remain pending after 31st March and if the payable amount exceeds Rs.5000/- it will attract interest @ 1 % per month. - Is it true?

  • Answer:

    Since you are 60 years old your basic exemption limit is Rs 1.6 lakhs. It seems your income exceeds this limit and you have tax liabiltity. A person having tax liabilty is not entitled to submit Form 15G. If the total income of a person during the previous year was less than the maximum amount which is not chargeable to income-tax, only then he is eligible for submitting Form 15 H / G. 1. If your total tax liability is more than Rs 10,000/-, only then you are required to pay Advance Tax. 2. If your total tax liability is less than Rs 10,000/-, can pay Full Tax amount before 31.07.2011 without any penalty. 3. Your figure of Rs 5000/- is wrong. If you pay "self assessment tax' of any amount after 31st July, then it will attract penalty @ 1 % per month. Non payment of advance tax will attract penalty as under sections 234B & 234C. HMT

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Go to a good CPA, they will estimate your tax due and can set you up with payment vouchers to make estimated tax payments. Otherwise save the money over the year in a savings account and earn some interest and then pay when you file income tax return. They will not give you a break for paying your tax early so its only worth it to avoid any penalty you might incur. Everything depends on a lot of things regarding your specific situation. Tax advice is complicated.

Tax Queen

1- In case your tatal tax liability is expected to more than Rs 10000.00 in financial year 2010-11, then your are required to pay "advance income tax" 30% by 15 sept 2010, 30% by 15 dec 2010 and remaining 40% by 15 march 2011. Use Challan 280 for this purpose. In case you fail to deposit the total tax by 31st march 2011, whenever you will pay tax that will be known as "self assessment tax" 2- You can pay full amount of tax in last of year but in that case you will be liable to pay interest u/s 234 C if your total tax liability is more that Rs 10000.00 3- If tax payable remain unpaid after 31.03.2011 then you will be liable to pay interest u/s 234 B & 234 C also provided your total tax liability is more than Rs 10000.00 (Rs 5000.00 limil is now changed) Interest is payable @ 1.005 per month.

SANTOSH KUMAR

First of calculate what is your total income. If your income crosses 2,60,000/=(Rs.160000/= + Rs.100000/= in form of PF,PPF,LIC,NSC etc.). 240000 for senior citizen plus other deduction in form of PF,PPF,LIC,NSC etc. Answer to your 1st question is that Advance tax is applicable in company /firm as you are retired person you should deposit tax as per your financial condition ,you can file income tax monthly basis. This is financially good. Challn no.281 applicable for company. Answer to your second question your can pay full tax in the last month. Answer to your third question is there is no limit, you have to pay interest from 7th April to date of deposit the tax

AJAY SRIVASTAVA

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