Individuals & Freelancers · Advance Tax & Capital Gains
Tax planning that happens in July, after the year is over, is just tax filing. The savings are made earlier, paying advance tax on time to avoid interest, and timing and structuring capital gains to use the exemptions before the window shuts. We run the numbers through the year so March holds no surprises.
Property, shares, mutual funds or gold, you want to plan the capital-gains tax, not just report it.
A strong portfolio year and you want to harvest and time gains efficiently before March.
Income with no TDS cover, so advance tax is on you, and easy to underpay.
Proprietor or partner whose advance-tax instalments need to track actual profits.
Planning to reinvest a property sale and want Section 54 / 54F / 54EC done correctly.
You paid interest last year for underpaying advance tax and want to avoid it this year.
| Step | What happens |
|---|---|
| Forecast income | Estimate the year’s income across salary, business, capital gains and other heads. |
| Compute the liability | Project the tax under the regime that suits you, net of TDS already deducted. |
| Schedule advance tax | Set the four instalments so 234B / 234C interest doesn’t arise. |
| Plan capital gains | Time disposals, set off losses, and map Section 54 / 54F / 54EC reinvestment. |
| Mid-year review | Revisit at each instalment as income and markets move, and adjust. |
| Year-end & filing | Final March true-up, then the return prepared from a plan that’s already done. |
| Asset | Short-term | Long-term |
|---|---|---|
| Listed equity / equity MF | 20% (Sec 111A) | 12.5% above ₹1.25 lakh (Sec 112A) |
| Property / unlisted / other | At slab rate | 12.5% without indexation* |
| Holding period | , | >12 months (listed) / >24 months (property & unlisted) |
*Property bought before 23 July 2024 may opt for 20% with indexation if it gives a lower tax. Section 54 / 54F / 54EC exemptions can apply on top.
Government / statutory cost
Professional fees depend on the number of income sources, the complexity of the capital gains and whether you want a one-time plan or year-round support. You receive a clear written quote after a short call, no hidden charges, no published menu.
Schedule a 15-minute callAnyone whose total tax liability for the year, after TDS, is ₹10,000 or more, salaried individuals with significant other income, freelancers, professionals and businesses. Resident senior citizens with no business income are exempt. It is paid in four instalments through the year.
15% by 15 June, 45% (cumulative) by 15 September, 75% by 15 December and 100% by 15 March. Falling short attracts interest under Section 234C for the deferment and Section 234B if less than 90% is paid by year-end.
From 23 July 2024, long-term gains on listed equity and equity mutual funds are taxed at 12.5% above a ₹1.25 lakh annual exemption; short-term at 20%. Other long-term gains, including property and unlisted shares, are taxed at 12.5% without indexation, though property acquired before that date may opt for 20% with indexation if it results in lower tax.
By reinvesting the gain in another residential house under Section 54 (or the net consideration under 54F), or in 54EC bonds up to ₹50 lakh within six months, or by parking the amount in a Capital Gains Account Scheme before the return due date until you reinvest. We map which exemption fits and keep the deadlines.
Yes. Short-term capital losses can be set off against both short- and long-term gains; long-term losses against long-term gains only. Unused losses can be carried forward for eight years if the return is filed on time. Planned well, loss harvesting can meaningfully reduce the year’s tax.
As a rule of thumb, set aside tax at your expected slab on net income each quarter and pay it as advance tax. We compute it precisely, including any presumptive-taxation benefit you qualify for, so you neither underpay and attract interest nor lock up cash unnecessarily.
It depends on your deductions. The new regime has lower rates but few deductions; the old regime rewards those with significant 80C, housing-loan interest, HRA and similar claims. We compute both on your actual figures and recommend the one that leaves you better off, then plan advance tax around it.
Interest applies, 1% per month under Section 234C for missing an instalment and under Section 234B where less than 90% of the tax is paid by 31 March. It is simple interest and entirely avoidable by scheduling the instalments correctly, which is the point of the plan.
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Vijay R Singh & Co., Chartered Accountants · FRN 136869W · ICAI M.No. 153926 · Andheri East, Mumbai, in practice since 2013. Section references are to the Income-tax Act (with capital-gains rates as amended w.e.f. 23 July 2024); for FY 2026-27 onward the Income-tax Act 2025 carries equivalent provisions. General information, not tax advice until engaged.
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