Advanced Tax Payment for Extra Income Salaried Employees


An example to simplify this is – if one earns an additional income of 4 lakh a year and is under the 30 percent tax bracket, he/she will have to pay a total of 1.2 lakh as advanced tax. If 40,000 is deducted by the one from whom additional income is received, then the employer will only have to deduct an additional of 80,000 from the employee. This, however, will only work if the employee lets his/her employer know about the additional source (s) of incomes.

One can find out about Tax Collected at Source (TCS) and Tax Deducted at Source (TDS) by filling form number 26AS in the IT website. This is done to make sure that all deductions made are proper. Filing for advanced taxes might seem like a bit of a hassle but is an integral duty of all people who fall in the concerned bracket.