Query on Advance tax

[card_wizard]

Guys I am a IT professional and I need to pay advance tax for my capital gains. From what I understood we need to pay the advance tax in 4 instalment throughout the year. Now my question is what if my total advance tax is 10,000 and I paid in september. Will there be any problem? or is it mandatory to pay in 4 installments

 

[arun4455]

Payment in advance would not be an issue. Only delayed payment would attract interest.

Just for information, tax on capital gain is required to be paid in the same quarter by due date in which capital gain is realised.

 

[card_wizard]

Payment in advance would not be an issue. Only delayed payment would attract interest.

Just for information, tax on capital gain is required to be paid in the same quarter by due date in which capital gain is realised.

Ok so for example suppose I get total 10,000RS as short term capital gain during first quarter then I need to pay (10000*15%) before 15th June. But then why is it so confusing that 15% should be paid before 15th June and 45% should be paid before 15th September

 

[arun4455]

Ok so for example suppose I get total 10,000RS as short term capital gain during first quarter then I need to pay (10000*15%) before 15th June. But then why is it so confusing that 15% should be paid before 15th June and 45% should be paid before 15th September

If you have a capital gain of Rs. 10000 before 15th June, then you have to pay 100% before 15th June only. The percentage slab works only for regular income, not for capital gain.

 

[Copycat]

If you have a capital gain of Rs. 10000 before 15th June, then you have to pay 100% before 15th June only. The percentage slab works only for regular income, not for capital gain.

Can you cite the IT rules or an article that backs up what you say, please?
I have no idea whether you are right or wrong, but your statement goes against my understanding of advance tax. I would like know the correct position regarding this.
Thank you.


EDIT: I found an article in Mint that clearly is contrary to what you mention

Tax on LTCG can be paid in four advance tax instalments

Tax on long-term capital gain (LTCG) can also be paid before filing of ITR by way of self-assessment tax along with interest by 31 July.

www.livemint.com

"Tax on LTCG can be either paid by way of advance tax in four instalments (15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March) or before filing of ITR by way of self-assessment tax along with interest by 31 July."

 

[RaviAglRaviAgl is verified member.]

Can you cite the IT rules or an article that backs up what you say, please?
I have no idea whether you are right or wrong, but your statement goes against my understanding of advance tax. I would like know the correct position regarding this.
Thank you.


EDIT: I found an article in Mint that clearly is contrary to what you mention

Tax on LTCG can be paid in four advance tax instalments

Tax on long-term capital gain (LTCG) can also be paid before filing of ITR by way of self-assessment tax along with interest by 31 July.

www.livemint.com

"Tax on LTCG can be either paid by way of advance tax in four instalments (15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March) or before filing of ITR by way of self-assessment tax along with interest by 31 July."

Whatever the article says, I will go with the comment by @arun4455 which is in the correct perspective. The article was more in line with the NRI who posted the query. Details of Payment of advance tax have been copied from elsewhere.

My daughter is studying for CA Inter and I confirmed with her that Tax on LTCG must be deposited in the quarter when accrued.

Better pay ltcg as advance tax, else while filing the ITR, the filing software will automatically add interest to it.

If you have a capital gain of Rs. 10000 before 15th June, then you have to pay 100% before 15th June only. The percentage slab works only for regular income, not for capital gain.

Do not rely on online stuff for finance and tax related stuff. Always consult a professional before making critical decisions.

Apologies, if I seemed harsh.

Thanks!!

 

[arun4455]

Can you cite the IT rules or an article that backs up what you say, please?
I have no idea whether you are right or wrong, but your statement goes against my understanding of advance tax. I would like know the correct position regarding this.
Thank you.


EDIT: I found an article in Mint that clearly is contrary to what you mention

Tax on LTCG can be paid in four advance tax instalments

Tax on long-term capital gain (LTCG) can also be paid before filing of ITR by way of self-assessment tax along with interest by 31 July.

www.livemint.com

"Tax on LTCG can be either paid by way of advance tax in four instalments (15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March) or before filing of ITR by way of self-assessment tax along with interest by 31 July."

Thanks for correcting me. I have got confused with some other rule.
Advance tax needs to be paid as per slab only. However, if capital gain arises by 15th December (between 16 sep to 15 dec), in such case, 75% needs to be paid by 15 dec. No advance tax required before 15th Sep.

 

[card_wizard]

Thanks for correcting me. I have got confused with some other rule.
Advance tax needs to be paid as per slab only. However, if capital gain arises by 15th December (between 16 sep to 15 dec), in such case, 75% needs to be paid by 15 dec. No advance tax required before 15th Sep.

Hi Arun got confused, so If between 15september-15December I made 100 Rupees profit as STCG from stocks then I need to pay 15 Rupees as advance tax today, am I right
I am a IT employee I have income from salary & I do buy and sell stocks

 

[arun4455]

Hi Arun got confused, so If between 15september-15December I made 100 Rupees profit as STCG from stocks then I need to pay 15 Rupees as advance tax today, am I right
I am a IT employee I have income from salary & I do buy and sell stocks

If you have made Rs 100 as capital gain from 15sep-15 Dec, so based on your tax liability on this capital gain, you must pay 75% tax today i.e. 15 Dec.

 

[card_wizard]

If you have made Rs 100 as capital gain from 15sep-15 Dec, so based on your tax liability on this capital gain, you must pay 75% tax today i.e. 15 Dec.

when should I pay the remaining 25%?

 

[arun4455]

when should I pay the remaining 25%?

By 15th March