When you sell property, listed shares, mutual funds, gold or crypto, the capital gain is taxable, and if your total tax for the year exceeds Rs.10,000 you must pay advance tax on it. Because a one-off gain cannot be foreseen, the Section 234C proviso protects you — no interest is charged for instalments that fell due before the gain arose, as long as you pay the tax in the remaining instalment(s) or by 31 March.
Key points
- Listed equity / equity MF: STCG (Sec. 111A) 20%; LTCG (Sec. 112A) 12.5% on gains above Rs.1.25 lakh
- Immovable property & gold (long-term, Sec. 112): 12.5% without indexation, or 20% with indexation for property bought before 23 Jul 2024
- Crypto / VDA (Sec. 115BBH): flat 30%; debt mutual funds: at slab
- Surcharge on these gains is capped at 15%; add 4% cess
- Due in four instalments — 15 Jun / 15 Sep / 15 Dec / 15 Mar (15% / 45% / 75% / 100%)
Non-resident with Indian capital gains? The advance-tax duty applies to you too. Check your exact liability with the NRI income tax calculator, and before selling property see the NRI property TDS rates – the buyer's section 195 deduction usually front-loads far more tax than the final bill.
Frequently asked questions
Do I have to pay advance tax on a one-time capital gain?
Yes, if your total tax for the year exceeds Rs.10,000. But under the Section 234C proviso, no interest applies for instalments due before the gain arose provided you pay the tax in the next instalment (or by 31 March).
What is the tax rate on long-term capital gains in FY 2026-27?
12.5% on most long-term assets (property, gold, unlisted shares) and on listed equity/equity MF above the Rs.1.25 lakh exemption. Property bought before 23 July 2024 may instead be taxed at 20% with indexation.
Estimates for FY 2026-27 (AY 2027-28) for general guidance only; not professional advice. Verify with your tax adviser.