According to the Income Tax Rules, Income Tax Return (ITR) is filed for income earned in the previous financial year to settle tax liability, claim or refund. But advance tax is paid only for the year in which the income is earned. According to the income tax rules, all those people including the salaried employees are liable to pay advance tax, after giving TDS, TCS or MAT credit. Tax liability of more than 10 thousand is created. Senior citizens residing in India who do not have any income from business or profession are not covered under this tax liability.
What are the rules of advance tax regarding capital gains or dividends?
In today’s era, the number of people investing in the stock market has increased a lot. Investors are getting capital gains. These investors are also earning from dividend. In such a situation, the question arises whether they also need to pay advance tax. It is important to understand here that advance tax is paid only when you earn. In such a situation, in the case of capital gains or dividends, it is difficult to tell how much you can earn in advance. Experts believe that the liability of advance tax on such earnings is made only after the receipt of the income. If there is no more installment due, then the taxpayer can deposit the full tax on the respective financial year earnings by 31st March.
Due dates for depositing advance tax
The taxpayer has to deposit advance tax in four installments in a year. The four dates for depositing advance tax are as follows
June 15 or earlier – For those whose tax liability is up to 15 percent.
September 15 or earlier – For those taxpayers whose tax liability is up to 45 percent.
December 15 or earlier – For taxpayers whose tax liability is up to 75%
On or before March 15 – For those taxpayers whose tax liability is up to 100%.
For example, if the next date for depositing tax is December 15 and someone is making tax liability, then he can deposit 75 percent of the tax liability as advance tax by this date. Advance tax can be deposited at www.tin-nsdl.com.
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If a taxpayer fails to pay advance tax on time, he has to pay interest on the arrears under sections 234B and 234C of the Income Tax Act. But if someone deposits this due by March 15, then he will not have to pay any tax at the time of ITR filing. If there is any difference between the amount of tax deposited and the liability, then the remaining amount will have to be paid along with interest.
(Article: Rajeev Kumar)