advance Tax payment

[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

[DR.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?

[DR.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.

AI Summary

Clarification on Advance Tax: TDS on Government Payments Over 5M, Quarterly Payments Required if Liability Exceeds 10K. A query was raised about the necessity of paying income tax in advance on payments exceeding 5,000,000 received from a government department. The response clarified that tax is deducted at source (TDS) by the government department as per prescribed rates, and the receiver is responsible for paying any additional tax. If the tax liability exceeds 10,000, advance tax must be paid quarterly. The possibility of full tax deduction by the receiver and obtaining a bank loan for tax payment was questioned, with the reply confirming that banks do not provide loans for advance tax payments.