Senior citizen accidentally makes an intra‑day trade while tax harvesting. Should he pay advance tax now?

Ideally, one should clear all advance tax by March 31, even if the March 15 deadline has passed. Today's Q&A explains this further in response to a senior citizen's query.

10.18 AM TEXRAIL shares buy quantity 2500 value @ ₹90.50 = ₹226,250.00

10.33 AM TEXRAIL shares sell quantity 850 value @ ₹91.06 = ₹77,401.00

When I realised the mistake, I immediately contacted my sharebroker to get the entry cancelled as it was done by mistake. They expressed their inability to cancel the entry as the transaction was already executed.

Kindly advise me how to avoid reporting this intraday transaction through ITR-3 with a penalty for the failure to pay advance tax for past quarters. I am 77 years of age. I did not intend to do any intraday transaction. I have not done any intraday transactions so far during this year and in earlier years. My capital gain earnings transactions were made during May, October, and November 2025, for which advance tax was not remitted.

Even otherwise, after tax loss harvesting, I was prepared to remit the entire tax due on 15-03-2026, being the last date for remittance of advance tax. Since the last date for payment of advance tax has passed, the tax department may levy a penalty for failure to pay advance tax instalments. That is my apprehension. Kindly advise how to go about it to avoid any penalty for failure to pay the advance tax for the earlier quarters due to this intraday transaction.

For failure to pay any instalment of advance tax, the taxpayer has to pay interest on the amount of the instalment not paid. The amount of the missed instalment can be paid with the next instalment.

Senior citizen taxpayers aged above 60 years are not required to pay advance tax if they do not have any income from Business or Profession.

All the transactions of purchase and sale that are squared off without actual delivery are treated as speculative business transactions and are taxed under the business income head.

Though there is an isolated transaction of speculative nature in your case, which can be reported under the head “Income from other sources", strictly speaking, it has to be reported under the business income head and thus disqualifies you from exemption from the requirement of having to pay advance tax.

Any tax paid by 31st March of the financial year is treated as advance tax, and therefore, you can still pay the advance tax for all four instalments along with the interest payable on the missed amount of instalments.

Please note that no penalty is levied for delay in payment of advance tax or for failure to pay advance tax during the same financial year, but interest is only required to be paid for such default.

Though there is only one transaction of speculative nature, as you still have time till 31 March 2026 to pay the advance tax, I would advise you not to take a chance but pay the full advance tax with interest by 31st March and get rid of the stress and tension. Please use the appropriate ITR form applicable for reporting business income while filing your ITR.