Hi,
Is one liable to pay interest on late payment of capital gains tax even if the payment is made within 5 days of gains accrual?
The case context goes like this.. so I sold shares converted out of ESOPS of my pvt firm to a firm that acquired it. I received the payment on some March 25th and I paid the full capital gains tax due in 4-5 days. While filing the ITR I mentioned it as advanced tax paid. I reckon the last day for payment of adv tax in a year is March 15. But what is the way in case the gains itself acrues after that date? I mean I didn't even have the cash to pay the tax amount before I received the money that I did get eventually. I am totally intrigued how can this be. I mean the interest penalty.
The ITR letter that i have received says total interest liability of Rs 2612 under Sec 234C.
The capital gains was Rs 15.45 lakh and being under the top income bracket I paid Rs 4.77 lakh as advance tax.
The in-house CA gave contrasting views. Initially he had told me if I submit the tax within first week of April 2015 there won't be any tax liability. But now he is saying maybe there is a liability as it was deposited after March 15 and advanced tax has to be paid as an anticipated tax.
CAclubindia
