ALPESH KUMAR (SUPRITENDENT) (140 Points)
24 December 2011Dear all,
I have query regarding advance tax liability on capital gain. One of my friend has sold the property in the month of AUG'11 and tax on LTCG has been computed, which comes to Rs. 500000/-. Whether the full amount of tax i.e. Rs. 5 lacs requires to be paid as advance tax in 1st quarter it self as LTCG has been already accrued/received or 30% before 15th Sept, 30% before Dec and remaing 40% in March to avoid interest u/s. 234C??????
Mahesh Paryani
(Chartered Accountant)
(365 Points)
Replied 24 December 2011
Dear Alpesh.
Kindly refer to Proviso to section 234C it states the following.
It is not normally possible for an assessee to estimate his capital gain or winnings from lottries etc which are generally unexpected Therefore in such cases, it is provided that if any such income arises after the due date of any instalment then the entire amount of tax payable (after deduction of tax at source, if any) on such capatil gain or casual income should be paid in remaining instalments of advance tax which are due or where no such installment is due by 31 st March of the relevant financial year. If the entire amount of tax payable is so paid then no interest on late payment will be leviable.
I hope this para solves your query
Regards
CAclubindia
