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Advance tax payable on capital gain from unlisted shares

Tax queries 211 views 1 replies

K Viswanathan

Head - Audit & Compliance -Finance

25 Points Posted on 26 April 2017

Dear all, I have exercised some stock options of unlisted shares in mid Apr 2017 that will be AY2018-19. I may not have any capital loss that may offset this for the rest of the year. My query is should I pay the advance tax as per the due dates 15% by 15/6/17, 45% by 15/9/17, 75% by 15/12/17 and 100% by 15/3/18 in a progressive manner or should I pay the total tax due before 15Jun2017 or immediately now?. I have come across a post long back in this forum (quoting something like Sec290) that the Assessing officer can insist on payment of the total tax due now. Thank you.

Replies (1)

amit aggarwal

Tax Professional

80 Points Posted on 26 April 2017

The AO can serve an order for enhanced tax based on the total income of the latest previous year for which the assessment has been made or the returned income in the latest return, whichever is higher. In such a case also the assessee shall have the right to file his own estimate for advance tax and pay tax accordingly. Refer section 210 (3) for more details.

Exercising ESOP is a one time event and such capital gain would not be there in earlier income declared with department. Hence, no need to pay in a single payment. One can opt to pay as per instalments of 15/45/75/100.