Sorry for n00b question but is there an index like sensex or Nifty that includes the sum total of the entire stock market?

Do we need to pay any advance tax for trading income before actually filing ITR?

@Quicko : just to get this clear: In the example that @SpacemanSpiff gave, the interest is charged only because they did not pay advance tax on the speculative (trading) income of 60L. No interest was charged because of non-payment of advance tax on CG, because they did pay 100% of the tax on CG by 31 March. To be more specific, the interest is applied only because they did not pay the following amounts of advance tax:

  • 12% of the tax on 60L of trading income by June 15
  • 36% of the tax on 60L of trading income by Sep 15
  • 75% of the tax on (60L – 10L) = 50L of trading income by Dec 15

(@SpacemanSpiff : the first two percentages are 12 and 36 instead of 15 and 45 because the rules give us this allowance.)

Is this understanding correct? In particular: no interest was charged for delayed payment of advance tax on CG, because they did pay the entire amount of tax by Mar 31. Is this so?

I ask because the link that you provided to your website does not make this clear.

@SpacemanSpiff : The line that you quote from is somewhat misleading for someone who doesn’t already know the rule, because it could be read as saying that the exemption applies to all speculative income. But this is not so: the exemption applies only to certain specific types of speculative income which are listed in section 2(24)(ix), namely:

any winnings from lotteries, crossword puzzles, races including horse races, 
card games and other games of any sort or from gambling or betting of any 
form or nature whatsoever

(I didn’t know this either, till I went digging after reading your comment.)

Since income from trading, while classified as “speculative”, does not fall into any of the above categories, it does not enjoy this exemption.

This tutorial from the IT department is very readable, and illustrates advance tax and interest charged on non-payment of advance tax.

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