Case AQ - How to fill up tax status Nil tax payable tax refundable or tax payable in tax return
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By - Sandeep
I hope U read my mail earlier.
I m working as a Tech. consultant my is deduct 10% TDS per month in salary.
last year filling ITR by self of ur referring VDO.
this year income tex dep. few change in ITR-4S.
Like- Tax Status 1. Refund tax Payable , 2.Tax Payable, 3. nil Tax payable
So please confirm me that my category which option is applicable and also confirm this year last date of submission bzc last year i think 31st july.
Solution - By Amlan Dutta
It is there every year and is nothing new ....This has to be understood ...you don't touch this ...this will get automatically determined
A.) TAX REFUNDABLE
Suppose it reflects as Tax refundable , it means that TDS credit availed in return is more than the tax liability on total income and as such when the return is processes the extra TDS deducted will be remitted to the assesse bank account mentioned in return
(look below at example 2)
B.) TAX PAYABLE -
However when it gets automatically determined as tax payable , what it now means is that the total income has a tax liability which is more than deducted TDS (Look Below at example 1 ) it is required that you first pay the tax and then take credit of the paid taxes so that all tax liability is met and it reflects as nil tax balance
C.) NIL TAX PAYABLE - And when it reflects as Nil tax payable , what it means is that the tax credit availed through deducted TDS and paid taxes (IT ) through challan is equal to tax liability on total income(as per slabs ) and as such there is no tax payable liability
Example - 1 Tax payable case ---pay the tax and take credit so that the filed then reflects nil tax payable ---only then upload return ---now read example
Say i have Bank FD interest income of 10 lakhs ... bank deducts TDS u/s 194 A at 10 % i.e 1 lakh rs i have no other income or saving So my tax liability is as per slabs on 10 lakhs which arrives at 1.30 lakhs
Now , then is my deducted TDS sufficient to meet my tax liability
No , i need to further build my tax credit with 30000 Rs It is therefore that i pay this balance 30000 rs through challan 280
Now, when i do this and deposit it in the bank , i get a receipt which contains the bank BSR code , challan number , date and amount paid all of which i then fill in the place that you speak of (schedule IT )
You see both tds deducted of 1 lakh and the taxes paid of 30000 Rs add to my tax credit , but the process is different In TDS there is a deductopr involved (aybe its bank , maybe its employer , maybe its consultant compnay , maybe its tenant )...when they deduct TDS as per provisions i use the TDS schedule to take credit of deducted TDS on my behalf
But when such TDS is not sufficient , like we could see in this case , it is then that i am required to pay the balance needed to meet out my tax liability Now surely when i do this i need a bank and there will be no deductor And thereofore you have a bank BSR code , challan number etc
Now when this is done in advance ...before year ends , the tax paid is called advance tax When this taxes are after the year ends , it is called self assessment tax And when it is paid after receipt of demand notice , it is called tax paid under deman raised under regular assessment You use the same challan 280 in all cases
But it is only for advance and self assessment that you are required to take tax credit ( the date of the payment determining whether it is advance or self assessment )
Example - 2 My Moms bank FD interest income is 2 lakhs Bank deducts as per TDS provision 10 % i.e 20000 Rs
Now as per liability tax is zero because income is below threshold
However since bank has already deducted TDS , she will take credit of deducted TDS I.e 20000 Rs The return then processes this as refund and when uploaded the refund amount is credited to the assesse bank account mentioned in the return
tax ...only then upload return
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