I am 32 years married and residing in Bengaluru with wife and a son. I recently got a promotion and my salary is now INR 9 Lakhs a year. My Company deducts TDS on my salary. I don't have any other taxable income. A relative has informed me that I must pay advance tax even if TDS has been deducted. Is this true?
As the name suggests, advance tax refers to paying a part of your taxes before the end of the financial year. It should be paid in the year in which the income is received. You are required to pay advance tax in four specified instalments (i.e., by 15 June, 15 September, 15 December and 15 March). You have to pay advance tax if the total tax liability on your estimated income is likely to be INR 10,000 or more during the relevant financial year (FY). This amount is calculated after considering tax deducted at source (TDS). Advance tax is applicable if you have sources of income other than salary, like capital gains on shares, interest on fixed deposits,capital gains on house property and so on. You are below the age of 60 years and have not earned any other taxable income (such as bank interest and capital gains). You would not be required to pay advance tax.