Payment of Income Tax

The list of forms of certificates to be issued and necessary form filled with assessing officer by the person deducting the tax at source :--

Categories of Payment	Form No. of the Certificate	Form No. of Return to be filled with the assessing Officer
Salaries	16	24 (annual) 21 (monthly)
Interest on securites (government)	16A	25 (annual)
Interest on Securities (others)	16A	27(in case of interest on securities payable to non-resident)
Interest other than interest on Securities	16A	26A (annual) 27 A (return of interest payment without tax deductions)
Dividends	16A	26 (annual) 27 (in case of dividend payable to non-resident)
Winning from Lotteries / Crossword Puzzles	16A	26B
Winning from Horse Races	16A	26BB
Payment to Contractors / Sub-contractors	16A	26C
Insurance commission	16A	26D (annual) 26E (where insurance commission paid / credited without tax-deduction)
Non-resident sportmen or sports association	16B	27
National Savings Scheme etc.	16A	26F
Equity Linked Saving Scheme	16A	26G
Commission, renumeration or reward on sale of lottery tickets	16A	26H
Payment to non-resident	16A	27
Foreign company being unit holders of mutual fund	16A	27
Units held by offshore fund and income from foreign currency bonds	16A	27

Deduction of Tax At Source

Person responsible for paying any income chargeable to tax under the head 'Salaries' is required to compute the tax liability in respect of such income and deduct tax at source at the time of payment. If the employee has any other income he can inform the employer in which case the employer can take that income into consideration for computing his tax liability. He will not take account of loss except loss from house property.

Those responsible for paying any income by way of interest on securities or any other interest are required to deduct tax at source at the prescribed rates at the time of credit of such income to the account of the payee or at the time of payment thereof by any mode. W.e.f. 01.07.1995 interest on term deposits with banks is also subject to such deduction.

Tax Collection at Source

In certain cases tax is to be collected at source from the buyer, by the seller at the point of sale. Such tax collection is to be made by the seller at the time of debiting the amount payable if the buyer to the account of the buyer or at the time of receipt such amount from the said buyer, whichever is earlier.

Advance Tax

Tax payers whose total income is likely to be chargeable to tax for the assessment year are required to pay tax in advance during the financial year (April 1 to March 31) on their estimated current income, which will be assessable to tax during the next following financial year called assessment year. The current income for this purpose means the total income which will be chargeable to tax in the relevant assessment year.

The advance tax payable is the tax on the current income minus the tax deductible at source or collectible out of any income included in the current income.

If the tax payer does not make payment of advance tax voluntarily, the assessing officer can issue a notice at any time during the financial year, but not later than the last day of February asking him to pay the advance tax in specified instalments. Such notice is ordinarily based on the assessed income of the tax payer for the latest year. The assessee in that case has an option to pay advance tax on the basis of his own estimate if he considers that his current income during the relevant accounting period would be less than the income on the basis of which advance tax has been demanded from him. The assessing officer can modify his notice of demand in certain circumstances. Similarly, the assessee can also revise his estimate any number of times and after adjusting the amount already paid, if any, pay the balance in instalments falling due after the revised estimate.

Consequence of Default of Delay

Delay in furnishing the return attracts charge of interest for every month or part of a month for the period of dealy on the amount of tax found due on the proceesing of return or on regular assessment (refer para 13.6) after giving credit for advance tax and tax deducted at source. In case of failure to file the return such interest is to be calcuted upto the date of best judgement assessment under sec.144.

A person liable to tax is required to file a return of income with the Assessing Officer having jurisdiction over his case. The return forms for the purpose can be obtained from any Income Tax Office or from a specified Post Office. The assessee before filing the return is expected to compute the tax on his returned income by way of self-assessment and if there is any additional liability of tax, the assessee is required to pay the same. The unpaid tax if any is recovered according to the procedure specified in the Act.

For the convenience of non-residents liable to Indian Income Tax, Non -residents Circles have been created in big cities namely, Bombay, Delhi, Calcutta, Madras, Cochin and Ahmedabad. Any person who is a non-resident and has not yet been assessed to tax any where in India, may file his income tax return in any of the above mentioned Non-resident Circles. However, once he files return in any of these Circles, Jurisdiction over his case will continue to be with circle unless it is change under orders of the appropriate authority.