Advance Tax on Capital Gains

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2010 Is Advance Tax on capital gain is required to pay as and when capital Gain arise or required to pay at periodical intervals as per the Act.

CA Chitresh Gupta

CA Chitresh Gupta (Expert)
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21 June 2010 As per periodical intervals as per IT Act

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 June 2010 At periodical intervals as per the Act.

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CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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21 June 2010 IS THERE A CHANGE IN PROVISIONS OF PAYMENT OF ADVANCE TAX RELATABLE TO CAPITAL GAINS OR OTHER SUCH INCOMES?

Yes. Previously, penal interest was not charged on account I of underestimate or failure to estimate either the amount of capital gain or of income from winnings from lottery, horse races, etc., if the assessee pays the whole of the tax payable in respect of such incomes, as part of the instalment of advance tax which is immediately due.

This requirement of paying the whole of the tax, caused some hardship, as the entire tax had to be paid on a short notice. In many cases, even the sale proceeds of the capital asset may not have been received before the advance tax payment become due.

With effect from A.Y. 97-98 and subsequent years, the tax payers have been allowed to pay tax relatable to the capital gain or to income from winnings from lottery, horse races, etc as part of the remaining instalments of advance tax which are due in the financial year.

Please click on below link for details querry related to capital gain.

http://www.incometaxindia.gov.in/publications/1_Compute_Your_Salary_Income/3_Income_from_capital_gains.asp#IS THERE A CHANGE IN PROVISIONS OF PAYMENT OF ADVANCE TAX RELATABLE TO CAPITAL GAINS OR OTHER SUCH INCOMES