Tax payers have to pay advance tax in each quarter and then finally settle it in the last quarter of the financial year. I want to know whether a senior citizen who is not having any business income has to deposit this advance tax or not? He is of course having income from pension, bank deposits etc.
Hey @umesh4,
A resident individual of age 60 years or more, not having any taxable income under Business and Profession is not liable to pay advance tax.
Hope this clarifies!
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What if senior citizen has rental income from property.
And he has losses in F&O but capital gains in equity. Is he liable for advance tax. What is the tax deadline date for him.
Is liable to pay advance taxes even if losses in trading, on entire income.
Hey @raghav.95,
Yes, advance tax needs to be paid. The due date to pay the advance tax for the 4th quarter (Jan-Mar) was 15th March.
However, you can still pay the same along with interest penalties before 31st March (as tax paid before 31st March is considered advance tax).
Now as I understand, senior citizen need not to pay any advance tax if his income is only from pension and bank deposits.
If he is engaged in any business or share/MF transactions then he is liable to pay advance tax.
Share/MF transactions are not business income
AFAIK the rule is “People aged 60 years or more who do not run a business are exempt from paying advance tax”. So shares and MF transactions do not cause advance tax liability for senior citizens