CA. Harsh Kumar (Chatered Accountant) (56 Points)
29 December 2010Long term Capital Gain has arisen in the hands of the Assessee during the financial year 2010-11 . Date of transfer the the asset is 23.09.2010.
The next date of advance tax is 15.12.2010 . It is an HUF , do we have to pay 60% of the tax liable to be paid or
we have to pay the whole amount of tax as there ia no assumption of tax . the tax liability has been determined?
Priyanka
(Chartered accountant)
(371 Points)
Replied 29 December 2010
sir. according to me, minimum 60% of tax on total income accrued or received should be paid bef 15 dec,
its a minimu limit...u can pay whole amt if u r tax is determined and client can afford. its just to avoid interest liabilty us 234B. OTHERWISE even if lesser amount is paid, it will have no adverse impact. u can pay balance bef 15 march to avoid further interest.
Sudharsan
(Article, CA Final)
(39 Points)
Replied 29 December 2010
Dear Sir,
The requirement of paying the whole amount of tax on capital gain in the immediate instalment of advance tax was there upto 31.03.1997.
The finance act 1996 has altered the above provision and w.e.f 1-4-1997, the tax on capital gain can be paid in the remaining instalments.
Hence, it is sufficient compliance if 60% of the tax on capital gains is paid on or before 15.12.2010 and balance 40% is paid on or before 15.03.2011.
PRATEEK
(ACA)
(102 Points)
Replied 07 January 2011
As per the provisions of the income tax act governing advance tax is concerned any income arising on account of capital gain or any other casual income that the advance tax is to be calculated considering them for the date of instalment which becomes due after the date of accrual of casual income or capital gain income.
CAclubindia
