I have made some capital gain. Iam also salaried for which my company already paid tax. But for capital gain i couldnot pay advance tax. So what is suggested now to reduce the fine. Shall I pay self assessment tax now or in month of July during itr filing. Will giving self assessment tax now reduce interest on tax ??Also how can I calculate accurate tax amount??kindly help.
Also additional question I made some losses in options trading 70k. Will audit be required??
Can I offset my short term or long term capital gains against option losses??
Your salary taxes are already deducted via TDS. But since you’ve earned capital gains and didn’t pay advance tax, you might be liable for interest under Sections 234B & 234C of the Income Tax Act.
So yes, if you pay the taxes on your capital gains in April, you will be able to save the interest charged u/s 234B compared to waiting till ITR filing in July.
If your total turnover from trading is more than ₹10 crore then audit is mandatory.
Option trading losses can be set off against both short-term and long-term capital gains.
Under Section 234B, interest is charged at 1% per month (or part of a month) from 1st April until the date of actual tax payment, if advance tax wasn’t paid as required. However, this interest is not applicable if at least 90% of the total tax liability has already been paid as advance tax.
Section 234C, on the other hand, applies when there is a delay or shortfall in payment of advance tax instalments as per the prescribed due dates.
@Ayushi_Joshi : Thanks for the clarification.Really helpful. Another question on point no 3. If I have taken some courses for equity or option trading. Can I also offset those course fees expenses with short term capital gains ??
You cannot claim course fees as an expense against short-term or long-term capital gains if you’re treating your gains/losses under the capital gains head. However, if you’re involved in F&O or intraday trading, which is classified as business income, then such course fees can be claimed as a business expense.