Advance Tax on speculative income for Senior Citizen

Dear Members,

I am a senior citizen and this financial year I have made some speculative and taxable income with significant trading activity. I had never filed tax before because I never had a taxable income before.

From cleartax website I could see that “Senior citizens, who are 60 years or older, and do not run a business, are exempt from paying advance tax.” . Source

I do not have any other income except from those speculative income. Do I need to pay advance tax? My turnover is low, so I wouldn’t need an audit. Do not know if this helps but I am a zerodha client.

A person needs to satisfy all the following conditions to determine if he is exempt from paying advance tax

  1. He is an individual
  2. He is resident in India as per the Income-tax Act
  3. He is of the age of 60 years or above at any time during the year
  4. He is not having any income chargeable to tax under the head “Profits and gains of business or profession”

Since trading activity is business (speculative in case of intraday equity or non speculative in case of F&O), you are not exempt from paying advance tax. Do check out our taxation module on varsity.

1 Like

Hi Nithin,

Thank you so much!

I am asking for a personal suggestion, do you think it will be adequate for me to try doing the e-filing myself considering I have all the reports available from zerodha Q? Or I would need to have some more documents/artifacts outside for which I should go for a hired help?

This Speculative gain is the only source of my income - so do I still need to maintain a balance sheet? Does Zerodha provide a balance sheet in any form?

Thanks once again!

As nithin not reply, i tried to attempt;

  • There are no any such thing called balance sheet(B/S) provided by any broker. B/S define capital that related to you/your business.
  • There are some expenses that are available for deduction against your profit/gain.
  • Yes, you can file your return your self provided you have accounting and taxation knowledge.
  • As nithin told you taxation module on varsity give you more detailed. especially understand the section like 44ab, 44ad, 44aa, Itr-4, set-off & carried forward, advance tax, for timely returned u/s 139(1).
  • It is better to consult for return if you have confusion.