Should one pay Advance tax for STCG & LTCG from the stock market on a quarterly basis?
Or is it ok to pay the total amount at the end of the year; if so what is the deadline – 31st March?
Advance tax payment is as well applicable to STCG & LTCG…If tax liability is Rs. 10000/- or more in a financial year then the assessee is required to pay advance tax (15% upto 15th june, 45% upto 15th Sept, 75% upto 15th Dec. and 100% upto 15% march.) while calculating this tax liability…income by the way of STCG & LTCG is also taken into account.
But as STCG & LTCG for the whole year may not be known at the time of payment of respective installment of advance tax hence Advance tax for this income is payable from the next installment from the date when STCG & LTCG is earned. for example, if STCG of 5 lakh is earned on 10th Dec. (shared sold on 10th Dec. ) then advance tax payment for this is not applicable during the first two installments i.e. 15th June & 15th Sept. But advance tax payment is applicable w.e.f. 15th Dec. … period-wise earning detail of STCG & LTCG is also required to be provided in the ITR and it is considered in the calculation of interest.