In financial year 2007-08 my employer has deducted less tax. so need to give some more money to IT dept. Someone told me that I need to pay some 1.5% interest (per month) on this extra tax amount from Mar 08 to till date (July 08). Is it so?
RE:Extra Tax
by swati singh on Jul 17, 2008 08:17 PM Permalink
Yes..you need to pay interest for the extra tax amount over the period from March to till date. However, the interest rate is 1%
RE:Extra Tax
by Ankur Tyagi on Jul 17, 2008 08:45 PM Permalink
Actually i have paid that, but its unfair. It was the responsibility of employer. and i am suffering... it was big amount :(
RE:Extra Tax
by kalpesh shah on Jul 19, 2008 09:06 PM Permalink
You need to pay it since thats the way the govt works... but u need to pay interest on only the difference and not on the whole amount
RE:RE:Extra Tax
by LALPET SRIDHAR on Jul 19, 2008 08:55 PM Permalink
Yes the liability if deducted lies with the employer. If deducted amount is not paid then you can insist them to pay the same. However as you have already made the payment you can claim from the employereif he has not remitted the tax. Yes interest is payable at 1% per month.Alternatively you dont pay interest and wait a notice from the dept for payment of the same .Then pay the same. It serves one purpose that of intimation from the IT dept for having processed your IT return.
