How to Prepare Anticipatory Income Tax Statement

To find out the taxable income and the tax to be paid for the financial year, the government servants calculate the anticipated income of a financial year. One 12th of the tax amount is deducted from the salary each month. This system prevails for a long time. But this was not followed properly by most of the govt servants. Now the finance department has published a circular regarding implementation of 8+4 EMI Model for the remittance of income tax based on the salary amount drawn by the govt servants.
anticipatory income tax calculator

What is 8+4 EMI Model?

Let us take the 12 months of a financial year as two parts – the first 8 months and the next 4 months. The first premium of income tax is usually deducted from the salary of March in a financial year. The deduction of same amount of tax premium would continue in the following 8 months if there are no other changes. We would get a clear idea of the income of the present financial year after 8 months. There may be changes in the salary income that was in the month of March. Hence it is preferred to make calculations again including the changes. Most of us have experienced the difficulty of paying a huge amount towards tax in the month of February for not revising our anticipatory income and tax. So, a revised anticipatory statement can be prepared after 8 months and tax deduction can be done based on the new amount.

Gross salary including basic salary, allowance, perquisites is calculated and deductions from 80 C to 80 U, housing loan interest, professional tax etc are lessened from the total salary income to calculate the tax amount(Old Regime). As per the anticipatory income statement, one 12th of tax should be deducted in the salary bill of every month. If the income tax amount is not deducted from the income sources, 1% interest and 1.5% of interest for not being paid the tax amount should be remitted. Penalty can be levied upon the defaulters and those who reduce the amount that is to be deducted. When there is an increase in the total salary amount due to salary hike or interest or other allowances, the govt servants should give a revised anticipatory statement and revised income tax amount ought to be deducted from the salary of the following months.

Anticipatory Income Tax Software 2024-25

Various software tools given here can be made use of, for preparing anticipatory income tax statement.
Online Software Tools 2024-25
Anticipatory Income Tax Statement 2024-25 by Ecostatt
Offline Software Tools 2024-25
Anticipatory Income Tax Statement 2024-25 by Sri.Sobhan Olive(Windows-Ms Excel)
Offline Software Tools 2023-24
Anticipatory Income Tax Statement 2023-24(2 in 1 Software) by Sri.Alrahiman(Windows-Ms Access)
Anticipatory Income Tax Statement 2023-24 by Sri.Babu Vadukkumchery(Windows-Ms Excel)
Anticipatory Income Tax Statement 2023-24 by Sri.Sudheer Kumar T K(Windows-Ms-Excel)
Related Downloads
Income Tax Calculation-New Regime
Income Tax Calculation-New Regime & Old Regime

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