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

Yes, No Advance Tax liability then, because of refund.

Originally posted by : Dhirajlal Rambhia
	Yes, No Advance Tax liability then, because of refund.

Okay. Thank you.

FOR BUSINESS INCOME / LOSS

He has to pay advance tax for the first quarter based on (actual profit for the first quarter and estimated profit for the next three quarters)

Since he started incurring losses from second quarter wiping out profit from first quarter he need not pay advance tax for subsequent quarters.

In the tax return, since he will be showing losses the advance tax paid on first quarter profit can be claimed as refund.

If the return is filed within time limit these losses can be carried forward and will be allowd to be set off against subsequent year profit from same business if continued.

Originally posted by : chandra

FOR BUSINESS INCOME / LOSS

He has to pay advance tax for the first quarter based on (actual profit for the first quarter and estimated profit for the next three quarters)

Since he started incurring losses from second quarter wiping out profit from first quarter he need not pay advance tax for subsequent quarters.

In the tax return, since he will be showing losses the advance tax paid on first quarter profit can be claimed as refund.

If the return is filed within time limit these losses can be carried forward and will be allowd to be set off against subsequent year profit from same business if continued.

But this is about F.Y 14-15. The due date for advance tax then was Sep, 15 2014 and not June, 15 2014. He was in net loss by July itself and was still in loss by Sep15, 2014. 

Originally posted by : U S Sharma

on the gross projection, advance tax was payable, irrespective of fact that later he made loss,
if loss is made in other part of year, advance tax paid would be claimed as refund.

He got into loss before the due date of 1st installment of advance tax i. e Sep 15, 2014. For salary income T.D.S was completely paid. He never recovered from loss in his share income for the rest of F.Y. Then?

upto the 1st payment date, i.e 15th sept , if gross projection is positive, then liability stands, otherwise ignore the same 

as the post nowhere states the projection of may/june and sept (upto15th) .is positive or negative .......  but goes to the year end direct.

advance  tax rules are on projection of income for the whole year,  so at the 1st payment due date, if the projection is positive, and  expected to higher side of 10k  then it matters, otherwise ignore  

 I look at this querry as like

issue no.1 :- Dealing / trading in DERIVATIVES ( F & O ) is NOT TERMED as SPECULATIVE BUSINESS , 

issue No.2:-as  LIBALITY OF PAYMENT of ADVANCE TAXES has to summed by a individual,  ( whether sole business or alongwith job) as looking of projections from income so earned in last year with current year

Originally posted by : U S Sharma
	upto the 1st payment date, i.e 15th sept , if gross projection is positive, then liability stands, otherwise ignore the same  as the post nowhere states the projection of may/june and sept (upto15th) .is positive or negative .......  but goes to the year end direct. advance  tax rules are on projection of income for the whole year,  so at the 1st payment due date, if the projection is positive, and  expected to higher side of 10k  then it matters, otherwise ignore

Actual figures (not projection):

April- loss of Rs. 3398

May- profit of Rs. 53785

June- profit of Rs. 4685

July- loss of Rs. 199145

August- loss of Rs. 17202

September- profit of Rs. 10293

Originally posted by : S S Dahale
	I look at this querry as like issue no.1 :- Dealing / trading in DERIVATIVES ( F & O ) is NOT TERMED as SPECULATIVE BUSINESS ,  issue No.2:-as  LIBALITY OF PAYMENT of ADVANCE TAXES has to summed by a individual,  ( whether sole business or alongwith job) as looking of projections from income so earned in last year with current year

No F&O trading. Purchase and sale of shares. This was the 1st time this individual started share trading. No share trading in previous financial years. His gross income from his salary in previous F.Y (13-14) was Rs. 489000. In F.Y 14-15, his income from salary till September was Rs. 910000 (he left the job in August). 

Originally posted by : U S Sharma
	under this scenerio, during the 1st 6 month he made a net loss from market :) so how he is going to make the loss absorbed and make it profitable to the tune of tax payable 10k+ ? (unless 10k+ is not annual tax liability, advance tax does not comes in picture)

Okay. So, no advance tax here. Thank you for your valuable suggestion.