Advance Tax Explained: What Every Salaried Employee Must Know About Tax On Other Income In India

Many salaried employees believe that TDS deducted by their employer covers all their tax liabilities, but that is not always the case. Ankit Jain, Partner, Ved Jain & Associates, explains that advance tax may also apply if you earn income from dividends, bank interest, capital gains, or other sources that are not included in your salary. He says employees can either declare this additional income to their employer so the tax is adjusted through monthly salary deductions or pay advance tax themselves in four instalments during the financial year. Understanding these rules can help taxpayers avoid interest and penalties while ensuring they remain compliant with income tax regulations and file their returns correctly.