You must pay advance tax in 4 tranches

I’ve been working as an assistant professor at a authorities school for 13 years frequently. Before that, I had labored on the identical school as an assistant professor for 13 years on a consolidated (informal) foundation with none break. Am I eligible for gratuity in the course of the informal interval?

—Name withheld on request

It is assumed that the faculty is roofed beneath the Payment of Gratuity Act, 1972.

As per the Act, an individual who’s employed for wages in or in reference to an institution to which the Act applies and has rendered steady service for not lower than 5 years shall be eligible to obtain gratuity.

During the interval of companies rendered on an off-the-cuff foundation, it might must be evaluated whether or not you certified as an worker, relying upon the phrases of your contract, interval of contract, and so on.

Only in case you fulfill the above necessities, you might be eligible for gratuity for this era. You can also want to talk about this additional together with your employer.

I’m an Indian nationwide and I work for a international consulate workplace in Mumbai. We have contractual jobs right here. Our tax just isn’t deducted by the employer. Could you let me know if I’ve to pay revenue tax? If sure, which ITR type must be used?

—Manasi

As you might be an Indian citizen, the revenue acquired by you from the international consulate workplace shall be taxable in your fingers in India. As taxes are usually not deducted at supply on this revenue, you would want to discharge your taxes by fee of advance tax in 4 specified instalments (i.e. 15% of whole tax by 15 June, 45% of whole tax by 15 September, 75% of whole tax by 15 December and 100% of whole tax by 15 March).

Any delay or deferment within the fee of advance tax could have curiosity implications as prescribed.

In case the taxes are usually not paid as advance tax or there’s a shortfall within the advance tax funds, the stability tax legal responsibility would must be discharged as self-assessment taxes previous to the submitting of the tax return together with relevant curiosity.

Accordingly, you might pay the whole taxes upfront as per the prescribed instalments relevant to you to keep away from any curiosity implications on the delay or deferment within the fee of taxes.

Please notice that the categorization of revenue could also be within the nature of wage revenue or income and positive aspects from enterprise or career (PGBOP), relying upon the information of your case, nature of labor, reporting and contracting preparations, and so on. The tax legal responsibility could accordingly be computed after contemplating the related deductions and bills as could also be relevant to wage or PGBOP revenue.

In case the revenue is within the nature of wage, for FY21, you would want to file ITR-1 or ITR-2 relying upon the revenue stage and different prescribed elements. In case the revenue is within the nature of PGBOP, you would want to file ITR-3 or ITR-4 relying upon the information of your case. Separately, do notice that within the case of PGBOP, the requirement of upkeep of books of accounts, tax audit and GST could also be verified individually.

Parizad Sirwalla is associate and head, world mobility companies, tax, KPMG in India.

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