How does one calculate advance tax?

[ontherocks]

If the only extra income is from Savings and Deposit/FD interest, how does one forecast what his/her annual income at the end of March is going to be?
FDs could be broken, savings could change any any time during the financial year. Is advance tax always a guesstimate?
Do people download the interest certificate from the bank's website in each quarter to get an estimate? What do people do?

 

[SonyTom]

It's an estimate. Even if you pay more, you will get refund

 

[bugmenot]

I don't understand why there is a concept of advance tax. Any CA/finance expert may share the rationale behind it.

It's better to pay actual tax after FY end just before ITR filing.

 

[SonyTom]

If we don't pay advance tax, we have to pay fine at the end when we file itr. Many people forget to pay advance tax. So it's more money for govt !!!

 

[hender]

If the only extra income is from Savings and Deposit/FD interest, how does one forecast what his/her annual income at the end of March is going to be?
FDs could be broken, savings could change any any time during the financial year. Is advance tax always a guesstimate?
Do people download the interest certificate from the bank's website in each quarter to get an estimate? What do people do?

If it can help

 

[soccer]

A q

You end up selling some property towards the end of the year

You had no other income for the year. You didn't anticipate the sale of that property, so didn't pay advance tax.

Would a.tax still be applicable in such a scenario and if not paid, would all those interest sections (A/B/C) apply too?