Salary paid though online
Answers
Explanation:
The income you earn is taxed in three ways, namely, a) Tax deducted at source (TDS), b) Advance tax payments, and c) Self- assessment taxes paid before filing your income tax return (ITR).
You are liable to pay advance tax if your estimated income meets the criteria as stated in the current income tax laws. Abhishek Soni, CEO, Tax2win, an ITR filing company says, "Normally, an individual whose total tax liability exceeds Rs 10,000 in a financial year is liable to pay advance tax. However, as salary received by employees is subject to TDS, in that case, they are not mandatorily required to pay advance tax on salary income. However, if you have income from other sources such as interest income or capital gains that are taxable which are not reported to your employer, then you are liable to pay advance tax on such sources of income."
Apart from advance tax, before you start filing your ITR, you are required to calculate your total tax liability on the income earned during the previous financial year and deposit any balance tax payable as self-assessment tax.