i am doing individual tax computation i came a situation that my client is doing short sale of securities please tell me the tax implication as early as possible
04 July 2013
SHORT SALE OF SECURITIES SHALL BE COMPUTED SEPARATELY. IT IS REQUIRED TO GET CERTIFIED BY THE CA IN CASE, THE TURNOVER IS EXCCED THE LIMIT PRESCRIBED US. 44AB.
IN CASE OF TURNOVER IS LESS THAN LIMIT PRESCRIBED BY THE 44AB, IT IS TAXABLE AT THE RATE OF 15% AS SHORT TERM CAPITAL GAIN
TUNOVER MEANS, DIFFERENCE BETWEEN THE PURCHASE VALUE AND SALE VALUE.
04 July 2013
For delivery based: If holding of the securities is less than one year then it will treated as short term capital asset[tax rate 15%] and holding is more than one will be treated as long term capital asset[tax rate is 20%].
For non delivery based: all securities shall be treated as short term capital asstet
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