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Advance tax for share sale on March 31

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Sri77

Others

63 Points Posted on 09 April 2023

Hi,

I sold some unlisted shares on March 31st 2023 and received the proceeds in April. What is the rule for paying 'Advance Tax' for the gains from those shares. Since a new financial year has already started, should I pay the estimated tax as 'Advance Tax' or 'Self-assessment tax' to avoid interest/penalty.

Regards

Sri

Replies (5)

Quick Summary

This discussion clarifies the rules for paying advance tax on gains from unlisted shares sold on March 31st, 2023, with proceeds received in April. Even though the financial year has started, the consensus is that the tax on these gains should be paid under the 'Self-assessment tax' category. Since the user has already paid over 90% of their total tax liability through advance tax payments before March, no additional penalty or interest should apply.

Sandeep Jain

Pivate

1492 Points Posted on 09 April 2023

Advance tax time period is lapsed

sabyasachi mukherjee

Profession Business

28246 Points Posted on 10 April 2023

Not necessarily.

Sri77

Others

63 Points Posted on 10 April 2023

I definitely will have to pay tax on top of what has been paid through Advance Tax. Should I pay under "Self-assessment" category?

Just for information, I have already paid more than 90% of my tax liability (even after including the long term capital gains from the shares sold on March 31st) through advance tax.