Advance tax payment

Taxation
1

I made a profit of Rs 73725.13 last year on selling equity shares after IPO allotment. This was around 9th July 2024. Since the equity shares were held for less than one year, the profit/gains would be classified as STCG on which no exemption is available, unlike LTCG.I sold these shares in early July when the STCG tax was 15%. From 23rd July, the STCG tax was revised to 20% but it is not applicable for me as I made profits before this date.

Do I need to pay this tax of Rs 11058.7695 (73725.13 * 0.15)? If yes, do I need to pay all this tax as an advance tax before March 31 2025?
I have not yet received any intimation from the IT department for any taxes to be paid.

References:

2

IIUC, yes, advance taxes are due on such income.
This is assuming that you have other income that puts you in a taxable income bracket,

Also advance taxes are due on a quarterly basis (as mentioned in the links shared above)
(15% / 45% / 75% / 100% in JUN / SEP / DEC / MAR).
So some amount will also need to be paid as interest/penalty
on the shortfall tax amount not-paid each quarter so far (SEP, DEC, MAR)
after the STCG income was generated in July.

Nothing unusual about this.
Currently, it is not expected that one will receive an intimation or notice for every tax transgression.

3

Hi @sherlock,

Yes, advance tax needs to be paid on such income. As the gains were realised in Q2, you were supposed to pay advance tax in that quarter itself.

However, you can pay the tax liability now as well. There will be some interest penalty that you’ll have to bear.

In case you wait till the time of ITR Filing, the outstanding dues will continue to attract a 1% interest per month untill you pay the tax liability.