08 July 2015
dear sir, a person bought shares worth 100000/-. does he have to compute the profit that he could made by the shares and pay the advance tax?
1. Advance Tax is applicable only if the estimated Income Tax liability (along with Cess@3%) exceeds Rs. 10,000/-.
2. Advance Tax is based on estimated tax liability. If your estimate of tax payability due to anticipated gain from the share trade exceeds the limit, then you should.
CAclubindia
