Pay advance tax if tax on estimated income is above Rs.10,000

Advance tax is payable in prescribed instalments if the total tax liability on the estimated income is likely to be Rs.10,000 or more during the FY. It is calculated after considering TDS


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I’m a salaried individual and earn Rs.70,000 a month. My company deducts tax from my salary after considering all my tax declarations. Do I need to pay advance tax?

—Jivika Anand

Advance tax is payable by an individual in prescribed instalments if the total tax liability on the estimated income is likely to be Rs.10,000 or more during the relevant financial year (FY). It is calculated after considering tax deducted at source (TDS).

Further, resident senior citizens (whose age is 60 years or above during the FY) who do not have income chargeable under the head ‘Profit and gains of business or profession’, are not required to pay advance tax.

In the absence of some facts in the query, we have assumed that you are below the age of 60 years and have not earned any other taxable income (such as bank interest and capital gains) on which appropriate tax has not been deducted. On this basis, you would not be required to pay advance tax.

From FY17, an individual is required to pay advance tax in four specified instalments (i.e., by 15 June, 15 September, 15 December and 15 March).

I have two apartments and I want to gift one of them to my daughter. I wanted to know if she will get taxed.

—Malik Jain

An immovable property received by an individual from any person during an FY without consideration and whose stamp duty value exceeds Rs.50,000, is taxable under the head ‘Income from other sources’ in the hands of the recipient. The term immovable property includes land or building, or even both.

However, an exemption is available if the property is received from a relative, which includes, among others, the individual’s parents. Accordingly, there should not be any tax implications in your daughter’s hands if such a property is gifted to her.

We have assumed that your daughter is a major (i.e., she has attained the age of 18 years) and hence, clubbing provisions are not applicable. Accordingly, any subsequent income from letting out the apartment or selling it shall be taxable in your daughter’s hands as ‘Income from house property’ or capital gains, depending on the nature of income.

With respect to the above transaction, it would be advisable to have all the necessary documentation in place to substantiate the genuineness of the transaction.

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