Whether advance tax is to be paid

Subhagata Dey (Querist) 12 July 2012 This query is : Resolved
I would like to know if a capital asset is sold in January 2012 whether the estimation of the gains to be included in the calculation of advance tax for September 2011? If not paid whether interest u/s 234B,234C is to be paid uner IT Act 1961
Whether for the capital gains "pay as you earn" concept is accepted.

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Guest (Expert) 12 July 2012
Dear Subagata,

For an asset sold in January, 2012, advance tax computation is not required to be made in the Return of September, 2011, However while computing tax in March, 2012 (3rd installment for individuals/ 4th installment for companies) the capital gains will be included.
Sec 234B would thus not be applicable, However the proviso to Article b of Sec 234 C shall be applicable.

Kindly ensure the ITR Form filled in March, 2012 correctly mentions the "quarter in which the asset is sold". An error in filling this form will attract interest, as the form is directly checked by the computer system.