sir i have a bsn. of share trading on future & options.i have earned an amount of rs 300000 till date. i like to know whether i have to pay advance tax and if yes how i will calculate the amount?2. as the nature of my bsn. is speculative in nature is it necessary to pay advance tax?3. if i dont pay the advance tax what may be the consequences?

When should it be paid?In the case of a non-corporate assessee, it should be paid in three installments of the relevant financial year:On or before September 15: Up to 30 per cent of the advance tax payableOn or before December 15: Up to 60 per cent of the advance tax payableOn or before March 15: Up to 100 per cent of the advance tax payableTaking the above example, Rs 3,000 by September 15; Rs 3,000 (60 per cent of Rs 10,000 - Rs 3,000) by December 15 and the balance Rs 4,000 by March 15. How would one calculate it?A person liable to pay advance tax can pay such tax of his own account without having to submit the estimate of income for the financial year to the assessing authorities. The rates in force for that financial year would be used to compute such tax. Moreover, based on information available on estimated income, a person may from time to time revise the remaining instalment of advance tax after making the first and/or second instalment.What if you don’t pay advance tax? Well, there are penalties in the form of interest payments to the taxman. But before worrying about penalties, find out if you are liable to pay advance tax. You don’t have to pay tax in advance if your tax liability is Rs 5,000 or less after reducing the tax deducted at source (TDS) from the total tax payable. Thus, if you are a male below 65 years of age and expect to earn Rs 2 lakh this year, an amount on which the tax payable is Rs 15,300, and the tax deducted at source is Rs 10,301, then the balance payable is Rs 4,999. Since this amount is less than Rs 5,000, you won’t have to pay any advance tax during the year.However, in cases where your tax liability is more than Rs 5,000 after deducting the TDS from your gross tax liability, you will have to pay tax in three instalments. Let’s take a look at the instalments and the percentage of tax payable:Advance tax instalments (Section 211) In the case of individuals, the advance tax is payable in three instalments: Due date Amount of tax First instalment by September 15 At least 30 per cent of total amount Second instalment by December 15 At least 60 per cent of total amount, less amount paid in first instalment Third instalment by March 15 100 per cent (total amount), less amount paid in the first two instalments Note: the above advance tax liability should be calculated on the basis of the income that will ultimately be reflected in the assessee’s returns. Also, do check the applicable tax/tax rates in your case. They might differ from the example given above.Penal interestInterest for deferment of advance tax (Section 234C) If you don’t pay an advance tax instalment in full, you have to pay interest at 1 per cent a month for three months on the amount that falls short of the required payment. However, in the case of default on the last instalment (March 15), the penal interest of 1 per cent is chargeable for only a month.

PLs note that the F & O income is not a speculative income.Thus you have to prepare your books of a/c accordingly and after deducting all business expenses you need to calculate your tax liability for the year or so.And you have to pay advance tax if the tax is more than 5000.For further details contact any CA near to you.S K Somani

for any kind of business advance tax is necessary.a company need to pay tax in 4 instalnents-15,45,75 and 100%of estimated.tax liability.for firms its paid in three instalnents-30,60 and 100%.for non payment of adv tax on or before prescribed rates,the govt charges interest for the amt that should have been paid by way of adv tax

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