If one hasn’t paid sufficient advance tax on his business income, then he/she is subjected to late interest and penalty. I would like to know if the same thing also applies for both LT & ST capital gains as well? The way the markets have moved for last few months, it is not possible to predict the same during Apr / July and pay advance tax for the same.
Please suggest @Quicko
Yes, advance tax is applicable on capital gains as well.
More about Advance Tax…https://learn.quicko.com/advance-tax
Advance Tax is applicable when your total tax liability is equal to or above INR 10,000 from all sources of income, which includes your LTCG/STCG as well.
Since the gains and losses are unpredictable, you should calculate and pay advance tax on realized gains from short term and long term securities to avoid penalty interest penalty u/s 234C. In case you have paid excess advance tax, you can claim a refund when filing your ITR.
Thanks so much @Quicko and @San78
I think IT dept give 0.5% per month interest on refund starting from 1 April of financial year .
Yes, it is 0.5% interest per month provided the refund is 10% or more of the total tax paid.