Do we need to pay any advance tax for trading income before actually filing ITR?
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I am earning profits from the April of this FY and lets says my total taxable income would be around 10L for this FY.
So,
Do I need to pay any advance tax at any intervals of this FY or just paying actual tax during the ITR filing in JUN/JUL is enough ?
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You need to pay advance tax if total tax amount is greater than 10k. Mar 15th is the last date before they start charging interest.
Paying in jun/ july will be enough if your registered as individual
not true as you will be charged the below two interests, you can use the below link to calculate your Advance Tax
https://incometaxindia.gov.in/Pages/tools/advan...
Interest for non-payment (Section 234B): Failing to pay at least 90% of your total tax dues as advance tax by March 31 will attract an interest charge of 1% per month on the shortfall.
Interest for delayed payment (Section 234C): Delays in adhering to advance tax payment schedules also result in penal interest
Also this is kinda tough taxation as only if you are employed you know your salary and every month TDS is deducted accordingly and this is somewhat automated even if you get a pay hike or switch over jobs but if you have only FD interest/trading like OP's query etc how to predict it correctly in a year as you have no clue if you are planning to create FD deposits or best example is the share market (just like this week as yesterday bloodbath and today recovery) so can't really say when I will sell my shares, worst is if I sell it the last few days of FY say Mar 31, 2024, I would still end up in paying the above interests 234 B & C for April 1, 2023 - March 15, 2024 quarters even though I decided to sell only on Mar 31, 2024
not compulsory, you will just need to pay interest extra
https://incometaxindia.gov.in/Pages/tools/incom...
Above link for interest calculation, assuming I have only 10L STCG which I made after 15-Mar, I still end up with the below ~5.5k interest
Yes, else they will lay interest on the tax to be paid.
cc : @third.i.financial.advisors