Applicability of Sec.234C of the Income Tax...Urgent Sir!!!

This query is : Resolved

Rajesh (Querist)
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03 August 2010 Dear Experts,
If an individual purchases some shares on April 20, 2010 and sells those shares on March 20, 2010. The profit arising from these transaction is Rs. 5 lakhs.
In this case is that individual required to pay Advance Tax?\
If such assessee has not paid advance tax then will Section 234C be attracted?

With regards,
Rajesh.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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03 August 2010 No Sec 234C will not be attracted.

*Payment of Advance Tax in case of Capital Gains/ casual Income:

In such cases it is not possible for the assessee to estimate his income in advance for payment of advance tax. Therefore it is provided that if any income arises in such cases after the due date of any installment, then advance tax on said income should be paid on / before the due date of next immediate installment or in case of no installment being due by the end of the Previous year, i.e., 31st March.

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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03 August 2010 I presume the date of purchase is April 20, 2009.

The individual is required to pay advance tax. However, interest u/s 234C is not applicable as the capital gain accrued after 15th March.

But the assessee should have paid 90% of the tax by 31st March to avoid interest u/s 234B. As such interest u/s 234B will be applicable @ 1% per month till the return is filed staring from April 2010.

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