Can adv tax from Mar16-Mar31 be paid by March 31st

Hi,

Just want to know if advance tax for capital gain from Mar 16-Mar 31 can be paid by March 31st or I have to anticipate that also by march 15th and pay. I might have some gain from stocks trading and that cannot be anticipated beforehand.

Thx,
Aashish

 

Replies (2)
Quick Summary
You generally do not need to pay advance tax on capital gains from stock trading that occur between March 16th and March 31st by the March 15th deadline. The tax authorities understand that such gains are difficult to anticipate. While paying the tax on these gains by March 31st is ideal to avoid interest under Section 234C, failing to do so won't attract penalties under Section 234A if you file your return on time. It's best to pay this tax when filing your Income Tax Return (ITR).

No need to pay advance tax on CG for transactions between 16th to 31st March. Forget about estimation of CG from shares, for Income tax the assumption is that by March 15th (last date for advance tax) u don't even know such a stock sale is going to happen and it is difficult to anticipate CG as it is purely depends on market conditions. So IT dept won't expect u to pay Advance tax on CG that not yet happened or earned by the end of 15th March.

After happening of transaction, even if u pay advance tax on CG after 15th March, it won't save u 234C interest. Helpful for 234A (if file after due date) and 234B. So don't worry. Just leave it and pay CG tax at the time of filing the ITR.
Originally posted by : Ashish Singhal
Hi,

Just want to know if advance tax for capital gain from Mar 16-Mar 31 can be paid by March 31st or I have to anticipate that also by march 15th and pay. I might have some gain from stocks trading and that cannot be anticipated beforehand.

Thx,
Aashish

 

If capital gain arise between 16th to 31st March, all you need to pay tax thereon on or before 31st March to avoid interest u/s 234C. Failure to pay tax on capital gain by 31st March would attract interest @ 1% u/s 234C and 1% per month or part thereof from 1st April till date of payment u/s 234B. Assuming you are filing income tax return before due date, 234A would not be applicable.

Regards,

Manoj

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