If your total tax liability (after accounting for tax deducted at source, or TDS) exceeds ₹10,000 during the financial year, you are required to pay advance tax, irrespective of the tax regime, according to recent business reports.

For individuals earning bank interest, no tax is payable if the income is below ₹4 lakh under the new tax regime, which is now the default tax regime. However, in the case of short-term capital gains on listed shares, tax becomes applicable on gains exceeding the unutilised slab. Since the tax arises from capital gains, there is no need to estimate the total gains for the year; advance tax should be paid in instalments on gains after the date of the share transfer.

While a rebate of ₹60,000 is available to residents with income up to ₹12 lakh, tribunals have held that the rebate can apply even to short-term capital gains. However, an amendment to Section 87A restricts the rebate to the rate provided under Section 115BAC. In this scenario, the rebate may only be available at 5 per cent, and tax utilities or returns may not allow the claim. To avoid potential disputes, it is generally advisable not to claim a rebate on short-term capital gains and pay advance tax accordingly.

This guidance assumes that the taxpayer is not a senior citizen. Senior citizens aged 60 years and above, without income from business or profession, are exempt from paying advance tax.