Do you have to pay advance tax?: "You can increase the amount of advance tax you pay in the next two dates. But you will have to pay interest of 1% per month on the outstandings. It may sound unfair, but that's the way the law stands."
I never did understand the concept of advance tax. I don't pretend to understand the rationale behind income tax in the first place, but let's gloss over that for now. From what I understand of advance tax, it seems that you need to estimate the income you will have in the coming year and decide how much tax you need to pay and pay that tax in 3 installments. And if you earn more than you estimated, then there is a penalty to be coughed up.
Riiiiiight. So I get screwed by the government if I am unable to predict the future? Go figure. And what happens if I earn less than what I predicted at the beginning of the year? Does the government pay me interest on the extra tax I paid?
Why do these people enjoy making life miserable for others?
1 comment:
i think it is nothing to do with predicting..rather may be based on the actual income..
say u get some income in the first qtr (by selling shares for eg..) then u dont have to wait till the end of year to pay your taxez..this is what u estimate..
then y u dont pay the full amount immediately?..'cos u might loose money in stock markets later and that needs to cancel each otehr..
so, i think its just based on when u actually got the income the advacen tax comes into picture..
no one can predict the future for sure..guv knows it..
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