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Advance tax for STCG

Tom S Peter (Article) (148 Points)

14 July 2011

Pls help by giving the correct answer...

What is the advance tax treatment (ie how much should i pay) for STCG,if it was arised on

a) June

b) november

c) March

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9 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 14 July 2011

advance tax dates were gone by 15th march , now compute the whole and pay "self assessment tax"

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Tom S Peter (Article) (148 Points)
Replied 14 July 2011

Sorry, I didnt get u, will u pls explain in detail Mr.Sharma

Its a doubt, and dont take it in its practical sense for this year.

(Guest)

Hi Tom

I am answering it assuming to be corporate assessee

STCG arises before 15 th june. Pay in 4 installment. 15%, 45%, 75% and by 15 th march pay 100%

STCG arises in Nov. Pay 75% by dec and balance 25% before 15th march.

STCG arises before 15 march, pay 100% by 15 th march.

In the above conditions not satisfied then S 234C interest get attracted.

STCG arises after 15 th march or before 31 march then pay 100% tax before 31st march. otherwise S 234B interest get attracted.

Thanks

Kaushal

https://taxbykk.blogspot.com/

I will be soon uploading interest calculator of 234C on my blog.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 14 July 2011

Originally posted by : Tom S Peter
	Pls help by giving the correct answer... What is the advance tax treatment (ie how much should i pay) for STCG,if it was arised on a) June b) november c) March

advance tax treatment is not separated for stcg

as you told for june / nov and march, and here onlyl june is gone, so how one can ascertain for nov and march now?

if you are liable to advance tax, then for stcg block clear the whole lot of tax in the quarter in whch the stcg is booked as stcg is a continuous process and the tax liability will get increased with time.

if you are not liable to pay advance tax ( i.e your tax liability is less than 10000 for the year after TDS) then unabsorbed threshold limit should be deducted from STCG 1st, then tax should be paid.

however at last quarter you have free hands to ascertain the whole calculation once again and adjust the excess advance tax paid if any.

for advance tax the limits are 15th sept .....30%....15th dec 60% and 15th march 100%

Tom S Peter (Article) (148 Points)
Replied 15 July 2011

Mr.Sharma I think i didnt frame the q well.

Just consider the scenario, Let the period be Sep 2010. A,an induvidual has a STCG of 200000/- which was arised on September 2010. Whether A has to pay advance tax of 30000/- (200000*15%)?

If no then what should be the advance tax amount and what is the treatment?

Hope you are clear with my Q!

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 15 July 2011

Originally posted by : Tom S Peter

Mr.Sharma I think i didnt frame the q well.

Just consider the scenario, Let the period be Sep 2010. A,an induvidual has a STCG of 200000/- which was arised on September 2010. Whether A has to pay advance tax of 30000/- (200000*15%)?

- 200000 STCG arised in sept 2010, ( check that such stcg is arrived from securities, and securities transaction tax is paid at the point of sale), so the tax of 30000 is payable.

- Now you have a snapshot of your other taxable income, if that is below threshold limit then you have to deduct get benefit upto threshold limit then pay tax on it, say your other income is below threshold olimit , 1 lacs, then 200000-80000= 120000 is available for tax payment i.e 18000/-

- we can not get sure that in next quarters we shall make capital gain, it may go in stc loss also, so you will have to adjust the stcl with atcg arrived during the year.

- to consider the situation ..pay 60% of 30000 within 15th sept, and re calculate before 15 the december, again before 15th march 2012, but remit the full tax on 15th march 2012

If no then what should be the advance tax amount and what is the treatment?

Hope you are clear with my Q!

1 Like

MAHENDRA CHOUHAN (MARKETING MANAGER) (23 Points)
Replied 31 July 2011

Hi,

Dear Sharma ji,

if STCG generating from flaat property so how to pay the tax amount generating on this transaction, suppose a flat is sold in july 2010 than advance tax payment treatemen i would like to know whether it has to be paid in lumpsum in sep.2011 or in 30% , in sep. 60 5 in dec 2011 and remaing before 15 the mqrch.

please suggest .

Mahendra

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 01 August 2011

Originally posted by : MAHENDRA CHOUHAN
	Hi, Dear Sharma ji, if STCG generating from flaat property so how to pay the tax amount generating on this transaction, suppose a flat is sold in july 2010 than advance tax payment treatemen i would like to know whether it has to be paid in lumpsum in sep.2011 or in 30% , in sep. 60 5 in dec 2011 and remaing before 15 the mqrch. please suggest . Mahendra

as stcg above is not covered u/s 111a, and its not incurring for whole of the year, pay 90% before 15th sept, recalculate on 15th dec and pay the balance by 15th march.(may be you can get some befifit of STCL from other sources in remainining period for set off)

MAHENDRA CHOUHAN (MARKETING MANAGER) (23 Points)
Replied 02 August 2011

Dear Sharma Ji,

Thanks a lot for ur suggetion. I would also like to know thistransaction will be dealt under which section of income tax if it is not included under u/s 111a? Please provide some details or links if u have.

Thanks and Regards,

Mahendra