Advance tax if profit in 1st 3 months, then loss

What was his final tax liability at the end of the financial year?

NO. He will not be liable to pay advance tax. As finally he need not pay any tax so there will not be any liabity to pay advance tax.

Dear Ankit,

Advance tax depends upon the projected total income calculated on the basis of actual monthly income.In your query its likely that there was income only for two months and also it was not to big .

So its does reveal that advance tax is applicable but its totally depend upon the actual tax liality at the end of March .

Hope it will help you 

God Bless You

Originally posted by : Ankit
	Hi, consider a person  bought and sold shares in a particular financial year. In that F.Y, in April this person had a loss of Rs.3400, in May he had a profit of Rs.54000 and in June he had a profit of Rs.4700. From July he began to incur loses. In July itself, he made a loss of Rs.2 lacs. And he just increased his losses from there. At the end of F.Y his loss from share activities stood at Rs. 6.7 lacs. My question is whether this person was liable to pay advance tax because he was in profit for the 1st 3 months? This person was also in profit in month of September, he made Rs.10000 in September (just in September, overall he was in loss).  I would like to add that this person was in a job at that time and employers deducted T.D.S from his salary regularly. But that was for his salary income only.  Thanks.

He paid Rs. 93000 as tax due to his taxable income from his salary. His gross total income was Rs. 910000 in form of salary.

salary component is a diff issue and TDS must be deducted, speculation loss / or loss in capital gains can not be set off from salary component 

No one is setting off speculation loss with salary. This person paid the tax on salary as any other person would have. T.D.S was deducted from his salary by his employer. The question is about the share transactions he has done. He was in profit till June and then spiralled off to a series of losses that resulted in loss of Rs. 6.7 lacs in share market. The question is whether he was liable to pay advance tax because he was in profit "from his share activities" till June. 

Also please note that he earned Rs.910000 from his job and paid tax on it. But in share activities, he suffered loss of Rs.6.7 lacs i.e by end of March he lost Rs. 6.7 lacs in share market. The tax he paid was on his salary income. No setting off of these two fields was done.

As per projection of profits from share trading, tax liability is exceeding 10K. so, I think he is liable for Advance tax in June (liability in case of June only arises in current financial year for individuals)

This is about F.Y 14-15. I see now that there was no need to pay advance tax before June 15 in F.Y 14-15 for individual taxpayers. So, since by September 15, 2014 he spiralled into net loss by his share activities, he wasnt required to pay advance tax for it. Am I right?

Originally posted by : Dhirajlal Rambhia
	As per projection of profits from share trading, tax liability is exceeding 10K. so, I think he is liable for Advance tax in June (liability in case of June only arises in current financial year for individuals)

This is about F.Y 14-15. I see now that there was no need to pay advance tax before June 15 in F.Y 14-15 for individual taxpayers. So, since by September 15, 2014 he spiralled into net loss by his share activities, he wasnt required to pay advance tax for it. Am I right?

Yes you are correct.

Originally posted by : Dhirajlal Rambhia
	Yes you are correct.

Okay. Thank you for your kind advice. 

Provided other tax liabilities were taken care by TDS, at least by Sept. 15,2014

Originally posted by : Dhirajlal Rambhia
	Provided other tax liabilities were taken care by TDS, at least by Sept. 15,2014

He left his job in August, 2014. So this income of Rs. 910000 is from April, 2014 to August, 2014. And T.D.S of Rs. 93000 was deducted a lot before September, 2014. He has no income except this in that year. His total tax liability upon return filling came below Rs. 93000.