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Advance tax on capital gains

Tax queries 954 views 6 replies

do i need to pay advance tax on short term capital gain from shares (online trading) if tds is already deducted on professional fees received and my  total income doesnt exceed the tds paid including capital gain.

e.g. if i have Rs. 200000 professional income tds on the same Rs. 20000

Capital gains short term Rs 50000

other sources Rs. 30000

Lic rs. 50000

Then do i need to pay advance tax on capital gain.

Replies (6)

Dear Tejal

 

As per section 208 of income tax act 1961 :- A person shall be pay advance tax if such amount of advance tax payable is more than INR 10000 in any financial Year.

 

 As you mentioned

 

- your short term capital gain is Rs. 50000.00

                 Less .. TDS           Rs. 20000.00

                 Tax Payable          Rs. 30000.00

 

Need to deposit advance Tax Rs. 30000.00 on or before due dates as the case may be.

Short term gain is Rs.50000/-

tax on the same is Rs.7500 

Than Dear

 

You need not to pay advance tax. B.coj you have already been deposited Rs. 20000 as TDS to Govt.

Tax on short term capital gains is levied at a flat rate of 15% under Section 111A. However, where the income of the individual tax payer other than the short term capital gains is less than the minimum amount exempted from tax as per Slab Rates i.e. Rs. 250000, then the short term capital gains shall be reduced by an amount by which the other incomes fall short of Rs. 250000.
 
First Case : Deduction under chapter VI is not claim (In your case LIC not claim)
 
Business Income     : 200000
Other Income          :  30000
                              --------------
Total Income            : 230000 
I.Tax Slab                : 250000 
                             ---------------
Balance Slab             20000
 
 
STCG Charge    : (50000-20000)*15% = 4500
 
No need to pay advance tax.

Second case : Deduction under chapter VI A claim ( In your case LIC claim)

 

(2) Where the gross total income of an assessee includes any short-term capital gains, the deduction under Chapter VI-A shall be allowed from the gross total income as reduced by such capital gains.

 

Business Income :         200000
Other Income :               30000
                                   --------------
Total Income                : 230000
Section 80 C                :  50000
                                   ----------------
Taxable Income            : 180000
I.Tax Slab                     : 250000
                                  ---------------
Balance Slab                  70000
 
STCG Charge : (50000-70000)*15% = Nil
 
No need to pay advance tax.
 

Agreed with Vishal Goel.


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