AMA: All About Advance Tax

[Nireka]

Hi @Akash_Shetty,

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

Advance Tax : Rules, Calculations, and Due Dates - Quicko

[MariyaKagdi]

Calculate and pay your advance tax liability directly through our Tax Planning App.

Check out here how to compute quarterly advance tax
https://support.quicko.com/hc/en-us/articles/360058825572-Quarterly-Calculations-of-Advance-Tax

Here’s how you can pay your advance tax
https://support.quicko.com/hc/en-us/articles/360059239531-Steps-to-Pay-Advance-Tax

Let us know below if you have questions regarding our advance tax calculator below

[Asha]

hi Team,

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

Thank you
Asha

[Sreetama_Chakraborty]

Hey @Shrutika_Shah , can you please help here

[radhesh23k]

Hello Madam,

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.

[CA_Niyati_Mistry]

Hello @radhesh23k,

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.

Hope this helps!

[sajad_saleem]

Hi guys,

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

Thanks

[Surbhi_Pal]

Hey @sajad_saleem,

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.

@sajad_saleem

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

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.

Hope this helps!