ITBA Issue letter (AY 2021-2022)

Hello,

I have got a ITBA Issue letter to my email id which is registered to incomextax portal and the contents in the letter as below.

Subject: Payment of Advance Tax - Letter

As per section 211, all the assesses (Corporate as well as non corporate) will have to
pay advance tax in 4 instalments w.e.f. 01.06.2016 as given below.
On or before - 15th June -- 15%
On or before - 15th September -- 45%
On or before - 15th December -- 75%
On or before - 15th March -- 100%
2. Further, as you are aware, as per the provisions of Sec.209 of the I.T.Act, 1961, you
are liable for payment of advance tax for the F.Y.2020-21. The fourth instalment falls due on
15.03.2021. Hence, you are requested to make the advance tax payment before the due
date without deferring the payment with a view to pay the same as self assessment tax to at
a later date, for the A.Y.2021-22.
3. You are further requested to furnish a copy of the challan evidencing the payment of
advance tax for fourth instalment on or before 15th March, 2021 to the undersigned for
record purpose.
  • My understanding is IT department is asking to pay advance and submit the advance challan of payment. is my understanding correct ?

  • My Source of income is Futures and options trading and I don’t trade in Intraday equities, for the last two years and I was paying advance and filing income tax with out any issues with the help of quicko.

  • This is year (FY 20-21) is not same as previous years for me. I was not active in the FnO trading due to personal issues and that little trading activity has losses and I’m not in profits this year FY20-21.

Considering the above letter issued to me what can be done from my side.

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

Feel free to get in touch with us here, we’ll be happy to help you with Advance Tax :slight_smile:

1 Like

Thanks for the details.