The Due Date to pay Advance Tax for FY 2020-21 (AY 2021-22) is 15th March 2021. If your total tax liability during the financial year exceeds INR 10,000, you must pay Advance Tax as a proportion of tax liability in each quarter of the financial year. You can read more here
If you do not have profits in F&O Trading and no other taxable income for FY 2020-21, you are not required to pay Advance Tax. Since you have received the ITBA email, you can log in to your account on the income tax e-filing website, check the tab for e-proceedings and submit a response. Under the response, you can describe your income situation and justify why advance tax is not applicable.
You can also use the Advance Tax Calculator to calculate your Advance Tax liability for the FY
There are several reasons as to why tax credit as seen in Form 26AS might not match with the amount actually deducted as shown in the salary slips. Some of the reasons could be as follows -
Amount of tax deducted from salary is not correctly reported by the employer,
TDS deduction is reported in the wrong section, or
The amount deposited with the government as TDS is wrongly mentioned
Other reasons for such an error maybe because of the wrong PAN being given to the deductor. A common mistake may include quoting the wrong Assessment Year or marking incorrect category of taxes paid while depositing advance tax or self-assessment tax can also lead to mismatch.
In such cases, you need to contact your deductor immediately to rectify this mistake or contact your jurisdictional Assessing Officer (AO) whose details can be found on the TIN-NSDL portal. It would be better to contact the Assessing Officer (AO) itself as the power of making corrections in challans lies in their hands.
You can go through this video of Advance Tax to in order to have a better understanding -
Hope this helps you! In case of any query related to taxes, feel free to write to us or contact us at Quicko.
Income from F&O Trading is a non-speculative business income and taxable at slab rates. You must calculate the income tax on all incomes including salary and F&O profits, claim credit of TDS deducted on salary income and pay advance tax.
Enter your data here to calculate your advance tax accurately
Equity Intraday trading is treated as a Speculative Business Income and taxable at slab rates. The advance tax liability for quarter 1 is 15% of tax liability and should be paid before 15th June.
Hi! When filing for Advanced Tax for Income from Profession (Presumptive) do I need to enter what I have earned so far or what I anticipate to earn for the year?
I entered the amount I anticipate to earn for the year and looks like the dues that I have to pay now are for the entire year and not the increments of 15-45-75-100
Also let’s say the correct way is to report the amount earned so far and I file taxes/pay due now for the same, come September will I just report what I earned from July-Sep?
If you have opted for the presumptive taxation scheme you need to pay advance tax only once in the last quarter of the financial year i.e. before 15th March.
Now, if you pay excess advance tax - you can claim a refund when filing ITR.
Here’s an article to help you learn more about advance tax
I have started trading on Jan-22. On March I have paid advance tax based on my profit and tax slab. When I am trying file tax return by quicko, it is calculating interest from April, 21. Is it really need to pay based on calculation from Apr,21 even though started trading in Jan-22?
Please help
I may be wrong, but shouldn’t the 234C interest calculation for Quarter 3 be Rs. 150 ? (ie: 5,000 * 1% * 3 months).
I also have following query:
Consider a case where total tax liability is Rs. 40,000. How is interest under section 234B calculated if taxpayer pays self-assessment tax of 20,000 on 25th March 2023, Rs. 10,000 on 25th April 2023 and balance 10,000 at the time of filing return on 25th May 2023 ?
I have attached an image for better clarity w.r.t above query.
Your calculation of the interest seems to be correct. My sincere apologies.
The interest under section 234B is calculated from 1st April of the next financial year on the outstanding tax liability. Interest of ₹200 (₹20,000* 1%* 1 month) will be levied on outstanding tax liability of ₹20,000 and ₹200 (₹10,000* 1%* 2 months) will be levied on outstanding tax liability of ₹10,000.
If my only income is in terms of Short term capital gains, how will I be taxed. Will I be taxed flat 15% till 10 lacs and 30% above that or will I be taxed as per the slab rates ?
Also when it comes to advance tax, if I have a net tax liability of more than 10000 already in the current financial year but I have carry forward loss from non speculative income from previous years, do I have to pay advance tax or will the same be adjusted against this year’s business Income/stcg such that the net tax liability becomes less than 10k.
Also in the quicko app which is integrated with zerodha, the table comparing old regime vs new regime there are options like CYLA, brought forward losses, carry forward loss but those cannot be edited and the values show 0. What’s up with that
Short term capital gains are taxed at a flat rate of 15%. If you have income only from these gains, you’ll get the benefit of the basic exemption limit, which is ₹2.5L, and the gains above that will be taxed.
Moreover, advance tax needs to be paid when your tax liability for the year exceeds ₹10,000. However, this is calculated after considering any losses that are being set-off against your incomes. So, if your tax liability after the loss adjustment does not exceed ₹10,000, paying advance taxes will not be mandatory.
You can add your current year and brought-forward losses on Quicko to visualise your net tax liability. In case you are facing any issues, please reach out to the team at help@quicko.com so they can assist you.
