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Huge Advance Tax

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Individual

Practice

27 Points Posted on 26 June 2023

A friend of mine has realized huge capital gains after a decade. Note, he has been filing nil / negligible returns over the past years and now has to pay capital gain tax in lakhs. He has to pay it via NEFT/RTGS method since it's not trivial.

Will it be safe to do so via NEFT/RTGS?

Also, I believe there is no requirement for any audit since it's his individual income and not any business income. Please confirm.

Replies (4)

Quick Summary

A friend has incurred significant capital gains after years of minimal returns and needs to pay substantial advance tax. The discussion confirms that paying via NEFT/RTGS through the Income Tax e-Pay Tax portal is safe. It also clarifies that no tax audit is required for individual capital gains.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121543 Points Posted on 27 June 2023

Yes, it is safe to pay by any banking mode, but pau it through income tax filing site. Tab E-Pay Tax.

https://eportal.incometax.gov.in/iec/foservices/#/e-pay-tax-prelogin/user-details

Individual

Practice

27 Points Posted on 27 June 2023

Thanks and no audit right? please confirm.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121543 Points Posted on 27 June 2023

Correct. No tax audit applicable over capital gains.

Aashok Kumar Sharma

Finance/Compliance Consultant

75646 Points Posted on 08 November 2026

Large capital gains after years of nil returns:
• Large capital gains in one year (after years of low income) are fine. Pay advance tax in the instalments following the gain (Sec 234C proviso exempts interest for capital gains if paid in subsequent instalments).
• The department may scrutinise the source of the asset (e.g. if bought years ago without matching income). Keep purchase documents and the funding source.
• Exemptions (54, 54F, 54EC) can reduce tax.
• Large advance tax payments don't trigger notices by themselves.