Income tax has to be paid by the individuals and others who earn income and the income can be from the following:Income from salariesInterest income from savings deposit - all accounts includedInterest income from term depositsIncome from rent on account of properties leased outany other professional incomeprofit from the businessincome through pensionsAs at present, the income during the period from 1st April, 2022 to 31st March, 2022 will be considered and this is called financial yearFor the income earned from the abovementioned categories (illustrative and not exhaustive) tax has to be calculated and should be remitted before 31st March, 2022 and such tax payment is known as advance tax.Advance tax means tax paid during the financial yearIn case of any short fall in payment of tax, the same can be paid after 31st March, 2022 and this payment is known as self assessment tax. However, this late payment attracts interest as per rules.Once income tax had been paid fully for the financial year, 2022 to 2022. income tax returns are to be filed before 31st July, 2017.It means the tax returns for the financial year 2016u20132022 has to be submitted during the period from 1st April, 2022 to 31st March, 2022 and this is known as assessment yearAs such financial year is 1st April, 2022 to 31st March, 2017(Tax payments should be completed)Assessment year is 1st April, 2022 to 31st March, 2018(Tax returns to be filed)Tax calculation - sample:Income:Income from salaries: 500000.00Savings interest - 12000Fixed deposit interest - 24000 - TDS deducted by the bank; 2400Deductions:Income tax deducted and paid by the employer: 12000Investments:Life insurance premium paid: 15000Tuition fees for children - college going - 45000Tax saving mutual fund - 50000Calculation of tax:Total income = 500000 + 12022 + 24000 = 536000Less rebate interest on savings deposit - 10000 (maximum)Balance amount: 536000u201310000 = 526000Less investments in tax savings instruments - 15000 + 45000 + 50000 = 110000 (Maximum permitted - 150000)Balance income = 526000 - 110000 = 416000Less basic exemption - 250000 (upto the age of 60 years)T axable income = 416000 - 250000 = 166000Income tax at 10 percent for first 250000 = 16600 (10 percent of 166000)Education cess at 3 percent of 16600 = 498Total tax payable = 17098 (16600 + 498)Less TDS deducted and paid = ( 12022 + 2400) = 14400Balance tax payable = 17098 less 14400 = 2698.00