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Senior Citizen with 3.5 Lakh Annual Income Asks About Short-Term Capital Gains Tax

Mihir

Mihir Tanna  |1051 Answers  |Ask -

Tax Expert - Answered on Jul 22, 2024

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more
Asked by Anonymous - Jul 20, 2024Hindi
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I am a sr citizen n hv income from fdr interest, sr citizen saving scheme interest, shares dividend etc. Totaling abt 3.5 lacs annualy. Filing tax return of nil tax in itr 2. My question is, if I incur a short term capital gain of, say 3 lacs, in July, do I hv to pay advance tax? Or, can I pay full tax amt @15% by 15th March,2025? I may further incur stcg in current year, then, how to pay?

Ans: Senior citizen not having business income are not required to pay advance tax
Asked on - Jul 23, 2024 | Answered on Jul 26, 2024
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Thnx sir. The only clarification I need is, whether the stcg die to sell of Shares is not fall in category of business income. What is the definition of business income, sir?
Ans: Gain from sale of shares can be business depending many factors. There is one Income tax circular No.6 /2016 Dated 29.02.2016 provides guidance for the same. If period of holding is more than 12 months, you can decide whether you want to show as Business Income or Capital Gain. But in case it is not held for more than 12 months, it will be decided based on volume, source of money, main head of income etc
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