Anticipatory Income Tax Statement (Insightful Information)

There are several sections and forms under the Income Tax Act of India. One among them is the Anticipatory Income Tax Statement.

If you are an employee you should submit your income estimation to your employer. This estimation of income is known as an anticipatory income tax statement.

Your employer requires this anticipatory income tax statement to deduct the tax amount from your salary in the next financial year.

Let us know more about the anticipatory income tax statement in this article.

What Is an Anticipatory Statement?

A statement that shows the estimation of your income is called an anticipatory statement. This statement should be submitted to the employer by the employee. It is done so that the employer estimates the income tax amount to deduct from your salary in the next financial year.

Why Do You Furnish an Anticipatory Income-Tax Statement?

Based on the anticipatory income statement the employer calculates the estimated tax payable. 1/12th of the tax payable gets deducted from your salary every month as TDS (Tax Deducted at Source). This terminology is not used in the Income-tax Act of 1961, but companies use it widely.

According to the research done in Anticipatory Statement, if the tax gets deducted from your salary in the coming months, there will be a condition of paying more/less tax. To avoid this, the Disbursing Officers (DDOs) should issue a revised anticipatory statement in December that shows the change in the rates of tax levied.

It would be advisable for everyone to prepare a revised anticipatory before processing the bill for December.

What Is the Format of the Anticipatory Income-Tax Statement?

The Anticipatory Income-tax Return/Statement does not have any fixed format. You can either use a word or PDF format at your convenience.

Anticipatory Income Tax Statement for Pensioners

Pensioners also can submit anticipatory income tax statements if they are liable to pay tax. In case your pension exceeds the threshold limit, you are liable to pay income tax for it. You can also submit an anticipatory statement that tells the information about your income.

Anticipatory Income Tax Statement Online

There are many software available online that help you fill your anticipatory income tax statement. As there is no standard format for this statement, you can also use either word or pdf format at your convenience.

You can also download the various formats of anticipatory statements online and use them.

Anticipatory Income Tax Calculator 2022-23

There are several income tax calculators available online that help you calculate your income tax. Fill in all your basic details like your name, gross salary, deductions, etc. The calculator does the calculation for you and tells you how much tax you should pay in the current financial year.

FAQs: Anticipatory Income Tax Statement

How can I get an Anticipatory Income Tax Statement Form in PDF?

The anticipatory income tax statement is available in PDF format online. You can also download it from the income tax e-portal. Download the statement from the e-file portal, fill it and submit it to your employer for computation of your tax.

How can I calculate anticipatory income?

You should deduct one 12th of tax from your salary bill every month. It gives the anticipatory income. If the income tax didn’t get deducted from your income sources, 1% and 1.5% of interest will be remitted for the unpaid tax amount.

Bottomline

Thus, you might get awareness about anticipatory income tax statements from the article above. The anticipatory statement is the most required statement for the employer to deduct tax portions from the employee every month.

If you have any doubts, feel free to get in touch.

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