Advance tax via TCS claim

Taxation
1

Hi All,

Will there be interest imposed if advance tax is not paid although the person has tax credit in form of TCS? Assume exactly same amount that had to be paid as tax is present as tax credit via TCS in his 26AS.

Thanks.

2

@Quicko

3

Hey @sand,

The tax liability is calculated after taking any TDS/TCS into consideration. So, in case your tax liability after deducting the TCS amount comes below ₹10,000, there will be no advance tax liability or interest on the same.

4

@Quicko Thanks for quick reply.

One doubt regarding same. The transaction that resulted inTCS happened on Mar 5th, but it’s not visible in 26AS as of today (11 Mar).

If the TCS deducting bank uploads the TCS confirmation in April (like monthly clearance), how will it affect advance tax deadline of this quarter I.e. Mar 15? Will there be interest levied for this small duration?

5

Hey @sand,

There may be some delay due to which the transaction is not yet reflected in 26AS or AIS. However, whenever the same is updated, it will include the date of the transaction and deposit. Hence, ideally, interest should not be applicable.

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