Advance tax on speculative business income

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Friends,

Normally no advance tax needs to be paid on speculative income like lottery winning, horse race earning etc. However what its implication will be on speculative business income? Say, one individual is involved in speculative business (like day trading in share market). The income from this business is certainly speculative gain. Is advance tax required to be paid on such income? Please comment and clarify.

Somenath

Replies (2)

Yes Advance tax required to pay when total tax liability at the end of the equals or more than 10000 after deducting tds & advance tax if any 

 

If assessee earn any speculative income is required to pay tax in same quarter 

Originally posted by : ✇ Mukesh Kumar

Yes Advance tax required to pay when total tax liability at the end of the equals or more than 10000 after deducting tds & advance tax if any 

 

If assessee earn any speculative income is required to pay tax in same quarter 

An individual needs to pay advance tax in three instalments of 30%, 30% and 40% repectively. As speculative gain is unpredictable in nature, how can one know in advance his total income from speculative gain for the whole financial year? One solution appears logical. Let me state it. The first instalment of advance tax is due on 15th September. One can do one thing. One can pay tax on this date for the income made till date on speculative business. This process may be followed in other dates as well. Please keep in mind that I am considering only income from speculative business. Income from other sources must be treated differently according to their own individual merits. Please comment.

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