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Got the Tax Due message while filing ITR? What to do next?

6/5/2017
Got the Tax Due message while filing ITR?  What to do next?

With the income tax department scrutinizing every individual for taxes, it is mandatory for every earning individual to pay income taxes on time. Keeping in mind the tax burden on income tax payers, the income tax department has provided adequate provisions for taxes due.

When taxpayers are on their way to filing their returns, they are surprised to see taxes that are due to be paid. This happens more often with salaried people because their employers deduct TDS before giving them the salary. This situation is also common with freelancers when they see tax due in their return, when they are unable to provide an estimate of their TDS deduction from clients. Tax due may occur due to several reasons, some of which are as follows:

1. If you are receiving interest from fixed deposit, you may be taxed for it. Just like salary, interest is also taxable. But, on income interest of Rs. 10,000 or more, there is 10% TDS by the banks. While on higher tax brackets additional taxes are charged.

2. Sometimes it may so happen that you have missed a certain deduction in your return. Or perhaps, your TDS doesn’t reflect in your forms. Ensure that all your deductions are accurately reflected in your forms by downloading Form 26AS. Also, make sure that you avail credit for every TDS entry in your return.  

3. When an employee has changed his job but has failed to submit his investment proof to his employer, he is liable to pay taxes. The employer may be unaware of your investment and may consider Section 80C and minimum deduction while not deducting the amount that he must.  

4. Your employer, being unaware of your freelancing projects or fixed deposits may make deduction on the basis of the amount you disclose to him. However, you must pay additional taxes for these.  

What you must do:

If there are taxes due on your income, make sure that you pay them as soon as possible. If you delay payment of taxes, you may attract interest. Also, you will not be able to file returns unless all your payments are made. Pay your outstanding taxes on the income tax department website. Log in to the e-filing portal and enter data in the ‘Self-Assessment Tax’ section by using Challan 280. Never procrastinate your taxes.

Taxes that salaried individuals are liable to pay are taken care of by the employers. But whoever has income tax exceeding Rs. 10,000 in any financial year must pay taxes every quarter, rather than making one payment by the end of the financial year. When people have income from their job, in addition to ‘other income’, they must pay advance taxes when 90% of their taxes have not been paid by the end of March. An interest may be charged under sections 234A, 234B and 234 C.

Advance Tax

Most of us reduce our tax burden by splitting it in portions and pay advance tax to avoid paying huge amount at once. It may happen that the amount of tax paid as advance tax every month may be less than the actual amount of tax, in which case additional taxes should be paid. Many taxpayers assess their taxes themselves but human calculation is liable to errors which again results in additional taxes to be paid by the taxpayers.

Paying additional taxes is a worrisome scenario, however, the income tax department has provided us with simple steps to do the same. Reminders and notices are also sent by the income tax department to taxpayers who have taxes due to be paid.

Payment of Due Taxes

In order to pay your due taxes, follow the following steps –

1.         On your desktop, open the official income tax department website.

2.         Login to your account.

3.         To pay due income tax, click on Challan no. 280.

4.         Chose the kind of tax applicable. This may be advance tax or tax on regular assessment. Click on ‘Tax on regular assessment.’

5.         Select the bank from which you are going to pay the due income tax.

6.         You will be directed to the online payment portal after you click on ‘Proceed.’

7.         After your payment is made, a receipt will be generated.

Make a soft copy of this receipt and keep it carefully with you for reference. You can also pay your due taxes offline in the form of cash or cheque by visiting your bank. You must acquire the Challan from the IT department office, fill it and submit it while paying the due amount.

To avoid any hassle or mistake, enter the right Permanent Account Number (PAN). Always double check the details and calculate the amount of due taxes to avoid mistakes.