Answer

ITR

Advance tax for NRIs with large gains

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  1. Facts

    If tax after TDS exceeds ₹10,000 for the year, advance tax is due. Short payment leads to interest under Sec 234B and 234C.

  2. Provisions and law

    • Sec 234B, Income-tax Act 1961 (now Sec 424, Income-tax Act 2025)Interest for shortfall in advance tax.
    • Sec 234C, Income-tax Act 1961 (now Sec 425, Income-tax Act 2025)Interest for deferment of advance tax.
    • Sec 211, Income-tax Act 1961 (now Sec 408, Income-tax Act 2025)Advance tax instalment dates.

  3. Analysis

    If you used a lower TDS certificate and the actual gain is higher, extra tax may be due. Pay as advance tax or self-assessment tax. Interest for capital gains can be eased for instalments after the gain date. Compute in the utility.

  4. Conclusion

    1. Compute total tax on the gain.
    2. Subtract TDS.
    3. Pay the balance.
    4. Let the utility compute interest.

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