TDS-Tax Deducted at Source from Salary
Any person (as defined in Section 192 ) responsible for making any payment which is taxable under the head ' Salaries ' 'is required to deduct Income Tax on the amount payable at the average of income tax computed on the basis of the rates in force for the financial year of payment on the estimated income of the assessee for that financial year. This tax deducted at source is commonly referred to as TDS which is akin to 'Withholding tax' . The employer is obliged to deposit the TDS to the credit of the Central Government within prescribed time limits. The employee is entitled to claim credit for TDS against his total tax liability for the year. The employee is required to make available to the employer the following details :-
 a) Details of salaries from other employer or employers.
 b) TDS by the other employers.
 c) Details of relief claimed in respect of salaries received in arrears as per section 89(1) of the Act. d) Details of income chargeable under any other head of income ( Not being a loss except in the case of income from house property. No other loss can be claimed at this stage but they can be claimed through filing of return of income.).

The employee should also furnish details of TDS under any other provision of the Act. The employer in turn has to take all the above into account for the purpose of deducting tax at source.

Advance Tax
The Act calls upon the assessees to pay tax in advance during the previous year only if their tax liability for the year is expected to be more than Rs. 5,000/- . An.assessee who is liable to pay advance tax is required to estimate his current income and pay advance tax as per the schedule given below.

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For Non-Corporate Assesses

Due date of instalment	Amount payable
On or before the 15th	Upto 30% of the total advance
Sept.of previous year	tax payable for the year
On or before the 15th Dec.of previous year	Upto 60% of the total advance tax payable for the year.
On or before the 15th March of previous year.	The balance amount of advance tax payable for the year.

Self Assessment Tax
After the return is prepared and the net taxable income is finally determined, it may so happen that even after taking into account the amount of TDS and Advance Tax paid , some tax or interest (payable for delay in furnishing the return or delay in payment of advance tax) remains to be paid. This amount should be paid as self-assessment tax before furnishing the return.
It is, therefore, important to note that before furnishing the return, the assessee has to pay the entire tax and interest, if payable, and the proof of such payment of taxes has to be attached to the return.

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Interest on Late Payment of Taxes
Where the assessee has to pay advance tax and there is either a default on the part of the assessee to pay the same or there is a default on the part of the assessee in the sense that the exact percentages of advance tax are not deposited before the specified dates, the assessee in such cases is liable to pay penal interest. The interest for short payment/deferment of advance tax is calculated as under:-

a.Interest U/S 234 - B for Short - Payment of Advance Tax
 If the assessee pays less than 90% of the total advance tax payable for the year  before the close of the previous year simple interest @ 1% per month or part thereof  is chargeable w.e.f. from Ist April of the Assessment Year to the date of  determination of income U/s 143(1) or regular assessment on the assessed tax as  reduced by the advance tax paid.
 
b.Interest U/S 234 - C for deferment of advance Tax
.In the case of Corporate Assessee-
If the advance tax paid by the company on or before the 15th of June falls short of 15% of the total advance tax payable for the year or if the advance tax paid by the company on or before the 15th of September falls short of 45% of the total advance tax payable for the year or if the advance tax paid by the company on or before the 15th of December falls short of 75% of the total advance tax payable for the year, the company shall be liable to pay simple interest @ 1.5% per month for a period of three months in each case on the amount of the shortfall in payment of tax. The companies are also liable to pay interest if the advance tax paid on or before 15th of March is less than the tax due on the returned income. However it has been provided that if the advance tax paid by the company on its current income on or before the 15th of June or 15th of September is not less than 12% or, as the case may be,36% of the tax due on the returned income, the company shall not be liable to pay any interest on the amount of shortfall by these dates.
In the case of non-Corporate Assessee-
If no advance tax is paid or the advance tax paid on or before 15th September is less than 30% of the tax payable on the returned income as reduced by taxes deducted at source, simple interest @ 1% p.m. is chargeable on the amount of the shortfall for a period of 3 months.If no advance tax is paid or if the advance tax paid on or before 15th December is less than 60% of the tax payable on the returned income as reduced by taxes deducted at source, simple interest @ 1% p.m. is chargeable on the amount of such shortfall for a period of 3 months. If the advance tax paid by the assessee on his current income on or before 15th of March is less than the tax due on the returned income,the assessee is liable to pay simple interest @ 1% on the amount of such shortfall.

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Interest is not leviable if the shortfall in the payment of advance-tax if it is on account of

under estimation of or failure to estimate the amount of capital gains income from winnings from lotteries, crossword puzzles, races, card games, gambling, betting etc. However this benefit of non charging of interest is available if the assessee pays the whole of the tax payable in respect of these incomes in the remaining instalments of advance tax which are due or if no such instalment is due, by the 31st day of March of the financial year.