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The Department of Direct Taxes in their notifications says senior citizens needn’t pay advance tax if she has no business income. As a woman senior citizen, I have no business income. But levies are made under Section 234 (A), (B) & (C). Please clarify.
C .Visalakshi
As per the provisions of Section 208 of the Income-tax Act, 1961 (‘the Act’), every person whose tax liability (after considering the Tax paid viz. Tax deducted at Source / Tax Collected at Source, relief under Section 89, 90, 90A of the Act, if any) on the estimated total taxable income, for the Financial Year (FY) exceeds ₹10,000, is required to pay taxes in advance in 4 prescribed quarterly instalments, being June 15, September 15, December 15 and March 15 during the said FY. As per Section 207 of the Act, Resident individual who is of the age of 60 years or more and not having income under the head Profits and Gains of business and profession’ are not required to pay advance taxes.
Based on the above, in case you are a resident senior citizen interest under section 234B and 234C of the Act would not be applicable. Interest under Section 234A would be applicable for the FY 2020-21 in case the tax liability exceeds ₹1 lakh (i.e. liability after adjustment of taxes deducted at source, advance tax and Self-assessment tax paid by 31 July 2021). Interest for late filings will continue to be levied w.e.f. 1 Aug 2021 (i.e. immediately after the original tax filing due date of 31 July 2021) even though the due date for filing of income tax return has been extended to 31 December 2021. Being a resident senior citizen, if the interest under 234B and 234C is levied, you may reach out to tax authorities / consider raising a grievance through your income tax e-filing online account. In case you are a non-resident, liability to pay advance tax exist and interest u/s 234B and 234C would be leviable.
Some shares that I bought 8 years ago have been delisted. However, they are still showing in my demat a/c. I have written to my broker but they’re not able to help. Since the companies have gone bankrupt, I am not able to contact them. I would like to know how to get rid of them so that I can book losses and offset against my long term capital gains.
Kuruvilla Mani
Capital Gains/ Loss come into picture, only when a capital asset is transferred. As per provisions of section 2(47) of the Income-tax Act, 1961 “transfer “in relation to a capital asset, includes – (i) sale, exchange, or relinquishment of the asset ; or (ii) extinguishment of any rights therein ; or ……. ” (iii) …. In the instant case, we understand that shares have just been delisted and are still in existence (appearing in your demat a/c). Once the shares get delisted, there are practical challenges in disposing of the shares in open market unless the company offers any exit route like buy back. In case the company has gone into liquidation or the company has been referred to National Company Law Tribunal (NCLT) under Insolvency and Bankruptcy Code and the NCLT has authorised the company to extinguish the shares, you can claim loss. You would be able to book losses upon transfer of these shares which could be on buy back by the company or liquidation of company or sale outside the stock exchange.
The writer is a practising chartered accountant
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