Suppose my tax liability at the end of the FY is 12k. Do I have to calculate the advance tax each qtr on the basis of qtr income or on the basis of yearly estimated salary ?
Consider trading
I did not earn money till 15th March
Earned some money from 16th March
How is advance tax calculated in that case
Hey @dtyxg,
Both intraday and F&O trading is considered as business income.
In the case of business income, the income needs to be estimated and advance tax needs to be paid. So, even if you earn profits after the 15th, you’d have to estimate the profits and pay the advance tax before the due date.
Hope this helps!
Hey @Sourav_Konar,
Advance tax needs to be paid by estimating your total income for the entire year.
To calculate your tax liability, you are required to
- Estimate all your earnings in a given year
- Subtract the amount of deductions eligible
- Compute the tax liability as per the latest slab rates (special rates in case of capital gains) and the regime opted for.
- If the tax liability exceeds ₹10,000, then you need to pay advance taxes.
- If any TDS was already paid, account for the same and make the advance tax payment for the remaining tax liability.
Hope this clarifies your query.
I don’t think that will be counted as realised capital gains if you buy them in same day.