When companies deduct TDS (Tax Deducted at Source), you can claim it as a credit while filing your ITR.
But here’s the catch—if you still have some tax left to pay after using this credit, and the amount is more than Rs 10,000, you may have to pay extra interest.
This is charged under Sections 234B and 234C for delay or short payment of advance tax.
Even if you clear the remaining amount while filing your return, the interest may already apply.
To avoid this, it’s better to estimate your total income early, adjust your TDS, and pay any balance tax in advance.
You can use the advance tax calculator on the income tax portal to make this easier.
Is Your Bonus Taxed Differently?
A performance bonus is simply treated as part of your salary.
There is no special or lower tax rate for it. It gets taxed just like your regular income, based on your tax slab.
Your employer will also deduct TDS on your bonus before paying it, based on the details you’ve provided in your tax declaration.
Tax Benefits on a Second Home Loan
Good news—your wife can still claim tax benefits even on a second home loan.
She can claim:
Principal repayment up to Rs 1.5 lakh
Interest deduction as well
However, there’s a limit. For a self-occupied property, the total interest deduction cannot exceed Rs 2 lakh per year.
If the loan is taken jointly, both co-borrowers can claim tax benefits based on their share in ownership and repayment.
Do Students Need to File ITR?
Yes, students may also need to file an ITR if they earn income.
If total income exceeds:
Rs 2.5 lakh (old tax regime)
Rs 3 lakh (new tax regime)
then filing is mandatory.
Even if your income is below this limit, it’s still a good idea to file an ITR—especially if you have foreign income.
It helps maintain proper financial records and can be useful later for visa applications or loan approvals.
