Get Answers to 3 GST Queries FREE with Expert CA guidance from CAclubindia Pro. Subscribe Now!

Capital gain - advance tax liability

Tax queries 2269 views 4 replies

Gajendra

Audit Executive

30 Points Joined August 2012

Hi All,

An Assesse has a Capital Gain of Rs. 30 Lakhs from Sale of shares in March. Due to which his advance tax liability is booted with interest which is quiet high under Section 234B&C.

In general assesse had no intention to dispose the share and did not pay any advance tax on the same, but the whooping increase in the marked tempted him to do so.

Now because of this one transaction -` Interest and Penaly under advance tax is quiet high.

If anybody can suggest is there any provision of Law to deal with this transaction to minimize advance tax,

Replies (4)

Giridhar S Karandikar

Team Lead

7558 Points Joined November 2011

Aren't the shares sold fall under the exempted category, as sale of shares held for more than1 year on which STT is paid are exempt for tax.

Gajendra

Audit Executive

30 Points Joined August 2012

No the share are unlisted securities and of long term in nature.

CA GUPTA

81 Points Joined November 2010

there is no interest liability on the assesse u/s 234b/c

Member

Management

325 Points Joined February 2010

If the sale was after 15th March, then there is no liability to 234C interest provided the advance tax is paid on or before 31st March. No interest under 234B will be liable if the entire advance tax is paid before 31st March.