Advance tax payment

[sherlock]

I made a profit of Rs 73725.13 last year on selling equity shares after IPO allotment. This was around 9th July 2024. Since the equity shares were held for less than one year, the profit/gains would be classified as STCG on which no exemption is available, unlike LTCG.I sold these shares in early July when the STCG tax was 15%. From 23rd July, the STCG tax was revised to 20% but it is not applicable for me as I made profits before this date.

Do I need to pay this tax of Rs 11058.7695 (73725.13 * 0.15)? If yes, do I need to pay all this tax as an advance tax before March 31 2025?
I have not yet received any intimation from the IT department for any taxes to be paid.

References:

Advance Tax Payment: Due Dates, Calculator, Applicability, Procedure, Installment Details

Advance Tax Payment Online: Due Dates, Calculator, Applicability, Procedure, Installment, Rates, Penalty - All you need to know. Know what is advance tax, who should pay it, how to calculate advance tax and due dates for advance tax payment.

cleartax.in

Guide to Advance Tax Filing in India for FY 2024-25

Learn about advance tax filing in India for FY 2024–25, eligibility criteria, due dates, and payment schedule under the Income Tax Act.

www.india-briefing.com

Taxation for Investors – Varsity by Zerodha

This topic explains how long term and short term capital gains/losses are determined based on the holding period of the investment and their applicable tax rates. We also studied how one can reduce LTCG tax liability through indexation.

zerodha.com

How is interest penalty calculated if you don't pay advance tax

Many people assume that skipping advance tax isn’t a big deal because the penalty is just 1% per month. But this small percentage can add up over time. If you don’t pay advance tax and wait until the time of filing your ITR, you won’t just be paying your tax liability—you’ll also owe additional...

qna.tax

 

[AlgoTrader]

You should have paid this 11k as advance tax before sept 15th, but paying before end tomo is better than paying it during filing

 

[desiviru]

The last date for paying advance tax for AY25-26 was March 15th, 2025.

Advance tax dates are 15th June, 15th Sep, 15th Dec, 15th March for a FY.

Since you booked in July, you shou;d have paid atleast 15% of it (total estimated tax) by Sep 15 itself.

Now if your income isn't taxable for FY24-25, you need to to worry. But if it is then see whether you have any TDS in 26AS as that would cover it.

If you are having more than 10K tax liability and no tax paid till now, be ready to pay penalty under section 234 a, b, c, d whatever applicable.

But as another person pointed out, it's always better to pay before March 31st rather than waiting for it till July in case tax liability is high. 🙂 Still you be charged penalty for paying between Mar 16-31 under section 234 (C). More the delay more will be interest accumulation on liability.

 

[JSK111]

You have to pay advance tax only if your overall tax liability is more than 10k.you can pay advance tax by 31st Mar. After that you have to pay penalty on that.

 

[desiviru]

You have to pay advance tax only if your overall tax liability is more than 10k.you can pay advance tax by 31st Mar. After that you have to pay penalty on that.

Let me correct you. As I already pointed out in previous post. Advance Tax payment between Mar 16 - Mar 31st attracts penalty under section 234C. Only till March 15th, it carries no interest payment. After March 31st, you will have to pay penalty of 234C + 234B that starts from April 1st. So delay always add up more interest.

But if your tax liaibility is less than 10K or even if it is more and TDS was deducted and deposited against your PAN, you have to calculate accordingly.

 

[GURPS]

Let me correct you. As I already pointed out in previous post. Advance Tax payment between Mar 16 - Mar 31st attracts penalty under section 234C. Only till March 15th, it carries no interest payment. After March 31st, you will have to pay penalty of 234C + 234B that starts from April 1st. So delay always add up more interest.

But if your tax liaibility is less than 10K or even if it is more and TDS was deducted and deposited against your PAN, you have to calculate accordingly.

If it is less than 10k then it will not attract any penalty and late payment fees?
Also which card you are using for tax payments which gives RPs or atleast count in milestone? I have to pay 72.5K.

 

[desiviru]

If it is less than 10k then it will not attract any penalty and late payment fees?
Also which card you are using for tax payments which gives RPs or atleast count in milestone? I have to pay 72.5K.

I have HDFC Bizpower alongside Millennia CC. Using Bizpower for tax payments upto 46875 per month. Provides 6250 pts and it is 50 paisa per point on hotel/travel. So Rs.3125 or 6.66%. HDFC Gateway takes 0.8496%. So effectively 5.82%.

And those who think how I got a Biz card after Millennia. Just a profile change did the trick and Bizpower is paid card with fee of Rs.2950 and with this mostly using 4L which kills the fee and also there are milestone vouchers. Using it for advance tax payments for self anf family. 🙂

 

[GURPS]

I have HDFC Bizpower alongside Millennia CC. Using Bizpower for tax payments upto 46875 per month. Provides 6250 pts and it is 50 paisa per point on hotel/travel. So Rs.3125 or 6.66%. HDFC Gateway takes 0.8496%. So effectively 5.82%.

And those who think how I got a Biz card after Millennia. Just a profile change did the trick and Bizpower is paid card with fee of Rs.2950 and with this mostly using 4L which kills the fee and also there are milestone vouchers. Using it for advance tax payments for self anf family. 🙂

Also, on the payment page I noticed that through SBI portal, paying through Credit Card is NA (check image). So, the conv. fees is NA or you cant pay through CC altogether. Or is it glitch?

 

[panu24]

Also, on the payment page I noticed that through SBI portal, paying through Credit Card is NA (check image). So, the conv. fees is NA or you cant pay through CC altogether. Or is it glitch?

You can't pay. No support to pay via CC.

 

[Virtual King]

Also which card you are using for tax payments which gives RPs or atleast count in milestone?

I have made Advance Tax payments for AY 2025-26 thrice - 30 Jan 25, 04 Feb 25 and 07 Mar 25. Total approx. Rs 4.0 L Advance Tax.
Used Amex Plat Travel credit card all three times through Canara Bank Gateway from the IT portal. It worked smoothly. In one go. No issues at all.
Primarily using this card for IT payments mainly.

The charges were 0.91% +18% GST = 1.07% of the transaction value i.e. Rs 4,280 additional in my particular case.

There were no Reward Points (RPs) but the spends counted towards the Rs 4 L milestone and I received bonus Membership Reward (MR) Points accordingly i.e. 15,000 MR Points on achieving Rs 1.9L milestone + 25,000 MR Points on achieving Rs 4.0 L milestone + Rs 10,000 Taj Voucher.

So, total 40,000 MR Points on Rs 4.0 L spends which @ Rs 0.30/MR Point (worst case scenario) = Approx Rs 12,000 + Rs 10,000 Taj Voucher = Approx Rs 22,000 benefit on spends of approx. Rs 4.0L (all IT payments) i.e. a return of approx. 5.50% - 1.07% (charges) = Approx. 4.43% reward rate.

Plus, you can pay the credit card bill after say 40 days, and the minimum savings account interest rate is say 3% p.a. (worst case scenario).
So, earning some savings bank interest on approx. Rs 1.3 L @ say 3% p.a. for about 40 days each i.e. approx. Rs 427, thrice i.e. total Rs 1,281.
So, total overall reward rate = Rs 22,000 (value) - 4,280 (charges) + Rs 1,282 (interest) = Rs 19,002 on spends of Rs 4.0 L = Approx. 4.75% reward rate.

Figures may vary with your specific case, but I hope the general drift is clear.

Hope this helps. 🙂

 

[hender]

I have HDFC Bizpower alongside Millennia CC. Using Bizpower for tax payments upto 46875 per month. Provides 6250 pts and it is 50 paisa per point on hotel/travel. So Rs.3125 or 6.66%. HDFC Gateway takes 0.8496%. So effectively 5.82%.

And those who think how I got a Biz card after Millennia. Just a profile change did the trick and Bizpower is paid card with fee of Rs.2950 and with this mostly using 4L which kills the fee and also there are milestone vouchers. Using it for advance tax payments for self anf family. 🙂

I have made Advance Tax payments for AY 2025-26 thrice - 30 Jan 25, 04 Feb 25 and 07 Mar 25. Total approx. Rs 4.0 L Advance Tax.
Used Amex Plat Travel credit card all three times through Canara Bank Gateway from the IT portal. It worked smoothly. In one go. No issues at all.
Primarily using this card for IT payments mainly.

The charges were 0.91% +18% GST = 1.07% of the transaction value i.e. Rs 4,280 additional in my particular case.

There were no Reward Points (RPs) but the spends counted towards the Rs 4 L milestone and I received bonus Membership Reward (MR) Points accordingly i.e. 15,000 MR Points on achieving Rs 1.9L milestone + 25,000 MR Points on achieving Rs 4.0 L milestone + Rs 10,000 Taj Voucher.

So, total 40,000 MR Points on Rs 4.0 L spends which @ Rs 0.30/MR Point (worst case scenario) = Approx Rs 12,000 + Rs 10,000 Taj Voucher = Approx Rs 22,000 benefit on spends of approx. Rs 4.0L (all IT payments) i.e. a return of approx. 5.50% - 1.07% (charges) = Approx. 4.43% reward rate.

Plus, you can pay the credit card bill after say 40 days, and the minimum savings account interest rate is say 3% p.a. (worst case scenario).
So, earning some savings bank interest on approx. Rs 1.3 L @ say 3% p.a. for about 40 days each i.e. approx. Rs 427, thrice i.e. total Rs 1,281.
So, total overall reward rate = Rs 22,000 (value) - 4,280 (charges) + Rs 1,282 (interest) = Rs 19,002 on spends of Rs 4.0 L = Approx. 4.75% reward rate.

Figures may vary with your specific case, but I hope the general drift is clear.

Hope this helps. 🙂

Superb explanation 👍✅, can you suggest solution for people having Low Tax - say 10k to 1 Lakh kind.
Or other CC, DC which are helpful...

 

[GURPS]

I have made Advance Tax payments for AY 2025-26 thrice - 30 Jan 25, 04 Feb 25 and 07 Mar 25. Total approx. Rs 4.0 L Advance Tax.
Used Amex Plat Travel credit card all three times through Canara Bank Gateway from the IT portal. It worked smoothly. In one go. No issues at all.
Primarily using this card for IT payments mainly.

The charges were 0.91% +18% GST = 1.07% of the transaction value i.e. Rs 4,280 additional in my particular case.

There were no Reward Points (RPs) but the spends counted towards the Rs 4 L milestone and I received bonus Membership Reward (MR) Points accordingly i.e. 15,000 MR Points on achieving Rs 1.9L milestone + 25,000 MR Points on achieving Rs 4.0 L milestone + Rs 10,000 Taj Voucher.

So, total 40,000 MR Points on Rs 4.0 L spends which @ Rs 0.30/MR Point (worst case scenario) = Approx Rs 12,000 + Rs 10,000 Taj Voucher = Approx Rs 22,000 benefit on spends of approx. Rs 4.0L (all IT payments) i.e. a return of approx. 5.50% - 1.07% (charges) = Approx. 4.43% reward rate.

Plus, you can pay the credit card bill after say 40 days, and the minimum savings account interest rate is say 3% p.a. (worst case scenario).
So, earning some savings bank interest on approx. Rs 1.3 L @ say 3% p.a. for about 40 days each i.e. approx. Rs 427, thrice i.e. total Rs 1,281.
So, total overall reward rate = Rs 22,000 (value) - 4,280 (charges) + Rs 1,282 (interest) = Rs 19,002 on spends of Rs 4.0 L = Approx. 4.75% reward rate.

Figures may vary with your specific case, but I hope the general drift is clear.

Hope this helps. 

Thanks for the very detailed answer. Looks like it works wonderfully for you.
Actually, I would not be able to pay so much advance tax each qtr. since my majority income is from govt. salary and they deduct 25-28% in TDS each month . Sadly, I dont even get the option to adjust the TDS percentage.

So, I am at loss here. I would have also got this luxury of Adv Tax of larger amt. if the employer was private.
Can u suggest CC like SC cards which give 2% ..

 

[tachniki]

For most salaried folks, tds for salary is already deducted at source (govt or private). I believe most salaried folks who pay advance tax has income from interest and is in tax slab above 10% or have capital gains or dividend income or rental income (or something else).

I would have also got this luxury of Adv Tax of larger amt. if the employer was private.

 

[desiviru]

@hender HDFC Biz Grow can be get easily and it provides same benefits if payment is lower like upto 20K only.

@GURPS Salary always has TDS deduction no matter public or private company. I too have TDS deduction of 15-20% on both Indian income and foreign income also and advance tax we pay is actually for capital gains which includes land/shop sales and digital gold profits etc.

As I told hender, get HDFC BizGrow card. For statement cash it will convert to 2.5-2.66%.