Capital gain tax on sale of share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2018 If an individual has Rs.120000 income from salary and Rs.200000 capital gain from sale of shares on daily basis. then whether such capital gain can be saved by investing as per sec 80C investments?

Renu Goyal

Renu Goyal (Expert)
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09 January 2018 long term capital gains from equity shares stt paid not chargeable to income tax and in case of short term capital gains stt paid deduction u/s 80c not allowed such short term capital gains amount. But be sure the income you are speaking of is capital gains and not speculation income.

ND (Expert)
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09 January 2018 In my view investment u/s 80C can be availed in case total income consists of only short term capital gains and salary income. If Long term capital gains are exempt from tax, then there is no implication. However if long term capital gains are taxable then also investment u/s 80 C can be done and benefit availed.

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Renu Goyal

Renu Goyal (Expert)
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09 January 2018 80c deduction is never allowed from long term capital gains and from short term capital gain it is not allowed in the case when the gains attract tax as per section 111A

Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2018 If individual selling shares and purchasing shares on daily basis it is capital gain or speculation income

ND (Expert)
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09 January 2018 Section 111A talks about deduction u/s 80 C not allowed in case of Short term capital gains but not long term capital gains which are not exempt.

Renu Goyal

Renu Goyal (Expert)
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09 January 2018 For long term capital gains refer sec 112