advance Tax payment, Income Tax

[Nitin Dahake]

Dear Sir,

If any one receive payment from Govt. Dept. It is necessary to pay income tax on receiving amount in advance?

Say if receiving amount is > ₹ 5000000. Or can receiving person demand deduction of tax {full} amount from receiving amount? { TDS}

If tax is not paid by receiving person then Are Dept. reject his payment.?

If tax{full} deduction is not there then Are person demand self assessment mode of payment of tax ?

If receiving person don't have tax amount; then how he will full fill his tax responsibility?

Thanks

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

If required under the provisions of tax the Government Department will recover tax as TDS at a certain percentage prescribed. The balance percentage is liable to be paid by the receiver. If the tax payable is more than ₹ 10,000/- then advance tax is payable in every quarter. At the end of the financial year the assessee may assess tax self and pay the tax, if any is payable to the Department.

[Nitin Dahake]

You not say anything about full tax deduction demand by receiver of payment. Also Are bank give loan for payment of income tax?

[MARIAPPAN GOVINDARAJAN]

TDS will be recovered as per the percentage fixed by the Act. No loan will be granted by the bank for payment of advance income tax.