I have switched my jobs during the year 2016-17. While filing the IT returns, apart from regular TDS, I got additional Tax due of around 82K and was prompted to pay it through Self Assessment Tax. I made the payment for the same. Now I am getting notices from AO of local Income Tax office asking for paying Advance Tax. The detail of first notice as below:
” On perusal of records for the assessment year 2017-18 it is found that you have discharged your liability of taxes by way of Self Assessment Tax instead of Advance Tax.The self-assessment tax paid is Rs.82K.
In this connection, your attention is drawn to provisions of Section 207 of Income Tax Act, 1961 which states that it is a liability on the part of the assessee to pay the advance tax on current income….”
And some points about section 234B, 234C and to correctly estimate the advance tax and make the payment.
This notice I received in the month of Nov 2017. Now few days back they have again sent one more notice for the same.
Since I have made all the tax dues and I can see that nothing is outstanding for me in the income tax efiling website for my profile.
Could you please let me know is it still necessary to pay the Advance tax even after considering TDS and Self assessment Tax?
You have a valid reason of not going for advance tax due to job switch. Instead of just staying away from replying or paying the due tax, better to respond to the notice.
Thanks for the reply. Since I have already paid it via self assessment tax is it again necessary to pay the Advance Tax again?
As per the notice they are saying I paid it by self assessment tax instead of Advance Tax.
Yes, I understood and they want to penalize you for not paying advance tax. Hence, suggesting you to reply to AO immediately.
Okay, but do I need to pay the Advance Tax?
Okay, so would you suggest to pay the Advance Tax in this case of job switch?
As per me, in your case due to job shift you not paid the advance tax. Hence, no such wrongdoing. But it purely depends on how your AO treats.