Should I Pay Advance Tax or Self Asses Tax?

Let’s assume I am a salaried person and and my employer pay the Taxes as TDS . Now I also have profitable income from F&O. Let’s also assume I fall under 30% tax bucket.
So, should I pay Advance Tax or Self Asses Tax for F&O income at each quarter end or can I pay the entire tax at the the time of ITR filing at the end of Financial year.
If I need to pay pay tax at each quarter end which type of tax should I pay.

@Sakshi_Shah1 can you help?

Hey @Debabrata_Mandal

If your net tax liability i.e. tax liability after TDS credits, for a financial year exceeds INR 10,000, you must pay Advance Tax in 4 quarterly installments. There is an interest penalty in case the Advance tax is not paid before the end of the financial year.

If the tax liability for a financial year exceeds taxes paid including TDS and Advance Tax, you must pay Self Assessment Tax before filing of the Income Tax Return.

Read more about Advance Tax

In your case, since you are earning income in the financial year, you must pay Advance Tax. Follow these steps:

  • Calculate Tax Liability for the quarter on all your incomes including salary and F&O profits
  • Deduct TDS Credit
  • Pay advance tax on or before the due date as per the installments
  • If you fail to pay advance tax, you must pay remaining tax dues as self assessment tax along with applicable interest and penalty

Calculate Advance Tax Liability

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Thanks for all the details, it really help. By the way do you(Quicko) have any paid plan such as I share all of the income and they calculate everything for me also guide me when I have to pay and what should I pay. @Sakshi_Shah1 @Nireka

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Hey @Debabrata_Mandal

Glad we could help.
If you need help with the calculation and payment of Advance Tax, you can schedule a meet with a tax expert here - Calculate and Pay Advance Tax

You can connect with our tax experts to get any personalized assistance for your financial situation with MEET