As per Sec. 234B of the I-T Act, senior citizens without professional income are not liable to pay advance tax. Sections 234B and 234C provide for the interest due to the government in case the tax is not remitted in accordance with section 208 during the assessment year.
Is it compulsory to pay advance tax for senior citizens?
Salaried, freelancers and businesses– If your total tax liability is Rs 10,000 or more in a financial year you have to pay advance tax. Senior citizens, who are 60 years or older, and do not run a business, are exempt from paying advance tax.
When 234B & 234C is applicable?
Interest under section 234B is applicable when: Your tax liability after reducing TDS for the financial year is more than Rs 10,000 and you did not pay any advance tax.
Who is exempted from paying advance tax?
Salaried, freelancers and businesses– If your total tax liability is Rs 10,000 or more in a financial year you have to pay advance tax. Advance tax applies to all taxpayers, salaried, freelancers, and businesses. Senior citizens, who are 60 years or older, and do not run a business, are exempt from paying advance tax.
Do senior citizens have to pay tax on dividends?
The good news is that, like in case of bank fixed deposit (FD), you may now deposit Form 15G (for individuals up to 60 years of age) or Form 15H (for senior citizens) to ensure that no TDS is charged on your dividend income, in case the total income in the financial year won’t cross the Rs 2.5 lakh mark.
HOW IS 234C calculated?
Interest on late payment of advance tax The interest for late payment is set at 1% on the amount of tax due. It is calculated from the individual cut-off dates shown above, till the date of actual payment of outstanding taxes.
What is the penalty for not paying advance tax?
Penalty for Default in Advance Tax Payment Under section 234B, interest for default in payment of advance tax is levied at 1% simple interest per month or part of a month. The penalty interest is levied on the amount of unpaid advance tax.
