Advance Tax against Income from Long term capital gains

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Discussion on advance tax liability for Rs. 40 lakh long term capital gains earned in May 2026. Members explained tax calculation, cess applicability, and advance tax instalment percentages to avoid interest and penalty under Income Tax provisions.

MONIKA SALHOTRA

MONIKA SALHOTRA (Querist)

27 May 2026 An assessee earns 40Lakhs as Income from Long term capital gains in the month of May 2026.
How much advance tax should be paid and in how many instalments so as to avoid any interest / penalty.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

27 May 2026 Tax liability would be Rs. 5 lakhs+ cess. Add any other assessed tax liability. Pay advance tax as 15% in first+30% in second + 25% each in last both installments...

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

27 May 2026 Advance Tax Payment Schedule (FY 2025–26)
Instalment Due Date Cumulative Tax Payable
1st Instalment 15th June 2025 15% of total tax liability
2nd Instalment 15th September 2025 45% of total tax liability
3rd Instalment 15th December 2025 75% of total tax liability
4th Instalment 15th March 2026 100% of total tax liability

MONIKA SALHOTRA

MONIKA SALHOTRA (Querist)

28 May 2026 Thanks sir for the prompt reply.
Please confirm, even though the asseesee has earned LTCG in the month of May, he will be liable to pay 15% tax liability before June 2026?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

28 May 2026 Yes, the assessee is required to pay 15% of the tax liability by June 15, 2026. Because the capital gain occurred in May 2026 (prior to the first advance tax deadline of the financial year), it must be factored into the very first installment calculation to avoid interest penalties under Section 234C.

MONIKA SALHOTRA

MONIKA SALHOTRA (Querist)

29 May 2026 Thanks for the reply.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

29 May 2026 You are welcome.

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