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Advance Tax liability for Senior Citizen

12 September 2021

I am a senior citizen, do I have to pay advance tax on capital gains from equity shares/mutual funds and Debt mutual funds for FY 2021-22?

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6 Replies

Amish (General) (340 Points)
Replied 12 September 2021

Section 207 - Liability for payment of advance tax.

(2) The provisions of sub-section (1) shall not apply to an individual resident in India, who—
(a) does not have any income chargeable under the head "Profits and gains of business or profession"; and
(b) is of the age of sixty years or more at any time during the previous year.

So if you are not running a business or profession than you do not have to pay advance tax.

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 12 September 2021

Not required

NARENDER BHATI (42 Points)
Replied 12 September 2021

Say total taxable income Rs 10 lakhs, 9 lakhs of income under other heads and 1 lakh of income under PGBP in a FY then advance Tax liability is only on 1 lakh of income. Am I correct?

sabyasachi mukherjee (26047 Points)
Replied 12 September 2021

The advance tax liability is applicable for all individuals whose income is taxable except where the Income is exempted from tax. Refer Sec 10- which enumerates the details of exempted income.

Amish (General) (340 Points)
Replied 12 September 2021

Originally posted by : NARENDER BHATI
	Say total taxable income Rs 10 lakhs, 9 lakhs of income under other heads and 1 lakh of income under PGBP in a FY then advance Tax liability is only on 1 lakh of income. Am I correct?

No since you have Income from business/profession. So you are not exempt and you have to advance tax on full 10 lakhs not just 1 lakh

sabyasachi mukherjee (26047 Points)
Replied 12 September 2021

In case you have business loss at the year.
if you pay nominal amount as adv. tax that will be adjusted on filing returns and you get refund pertaining to that assessment year.