Ch.8 · Capital Gains Tax on Mutual Funds · hard
What is an investor's obligation when capital gains exceed the advance tax threshold?
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EXPLANATION
If total tax liability (including capital gains from mutual fund redemptions) exceeds ₹10,000, advance tax must be paid in installments: 15% by June 15, 45% by September 15, 75% by December 15, and 100% by March 15. For capital gains that arise after September 15 (not predictable earlier), special rules allow the balance to be paid in subsequent installments without interest. Non-payment attracts interest under Sections 234B (3% p.a.) and 234C.
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