Liability to pay advance tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 January 2017 dear all
assessee is age of 66 year, having income from long term capital gain from sale of property rs. 30 lacs, only /-- (no other income in any other head).

whether assessee is liable for payment of advance tax.

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CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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18 January 2017 As per provisions of section 207 if an asessee is a senior citizen and does not have income from business or profession he is not required to pay advance tax.

Querist : Anonymous

Querist : Anonymous (Querist)

18 January 2017 but if assessee is seninor citizen and having nil income from (profit from share of firm nil profit, nil salary and nil interest income from firm). and long term capital gain from sale of property of rs 30 lacs. then is he liable for advance tax?
thanks

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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02 August 2024 Under Indian tax laws, the liability to pay advance tax is determined based on the total income of the taxpayer and their status as per the Income Tax Act. Here’s how it applies to your scenarios:

### **1. Advance Tax Liability for Senior Citizens:**

#### **1.1. Income from Long-Term Capital Gain Only:**

- **For Senior Citizens (Age 60 years or more):**
- Senior citizens are not required to pay advance tax if their only source of income is long-term capital gains (LTCG) from the sale of property or shares.
- Specifically, if the total income comprises only LTCG and there is no other income, the senior citizen is not liable to pay advance tax. This is because senior citizens are exempt from advance tax payments if they do not have income from any other sources.

#### **1.2. Other Income Sources:**

- **If there is no other income:**
- For a senior citizen who has no other income sources apart from LTCG, such as profits from a firm, salary, or interest income, and the LTCG is from the sale of a property of Rs. 30 lakhs, there is no requirement to pay advance tax.

### **Key Points to Consider:**

1. **Threshold for Advance Tax:**
- Normally, advance tax is applicable if the taxpayer’s total tax liability (after accounting for TDS) exceeds Rs. 10,000.

2. **Advance Tax and Senior Citizens:**
- Senior citizens, who are 60 years or older, are exempt from paying advance tax if their only income is from LTCG or pension. They should ensure that their total tax liability is settled while filing the income tax return.

3. **Tax Calculation and Filing:**
- Even if advance tax is not applicable, the senior citizen must still file their income tax return and pay any taxes due before the filing deadline.

4. **Applicable Sections:**
- Under **Section 207** of the Income Tax Act, advance tax is required to be paid if the tax payable exceeds Rs. 10,000 in a financial year. However, exemptions are provided for senior citizens under specific conditions as mentioned above.

### **Summary for Your Scenarios:**

- **For an Assessee Aged 66 Years with Only LTCG of Rs. 30 Lakhs:**
- The senior citizen is **not required to pay advance tax** if LTCG is their only source of income.

- **For a Senior Citizen with Nil Other Income and LTCG of Rs. 30 Lakhs:**
- The senior citizen is also **not required to pay advance tax**.

In both cases, the senior citizen must still ensure that any tax due is paid before the end of the financial year when filing their tax return.