intra day capital gain tax

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Divya Goyal (Querist)
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01 February 2011 Respected experts,

Please resolve this little query of mine,

I purchased 50 shares one month ago @ Rs 100 each.
Today I sold them @ Rs 75 each and bought them back the same day at Rs 80 each.

What will be my Loss or profit?

Will it be Rs 75 - Rs 100 = Rs 25 loss per share and my shares in my account stand @ Rs 80 each (after booking loss)
or
Rs 75 - Rs 80 = Rs 5 loss per share and my shares in my account stand @ Rs 100 each (after booking loss)

Thanking you in anticipation for handling my query.

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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01 February 2011 Since you bought and sold shares on the same day, any profit and loss on sale of such shares will be treated as speculative profit/loss.

Your 50 shares purchased one month back will be intact.

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Divya Goyal

Divya Goyal (Querist)
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01 February 2011 Sir,

If I am incurring heavy losses in this share and I want to offset my profit with this loss then i cannot do this intraday.

Will it be better to sell these shares and purchase them the next day to avail such a kind of benefit.

Will it be beneficial at all?

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Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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01 February 2011 You cannot set off intra day loss with your capital gain.

You can either sell from one buy at the same time in another or buy next day in order to get the benefit of loss.

However, if you do not have no speculation profit in that financial year, such loss will be carried forward to next year and allowed to be set off any speculative profit

CA. Praveen Narayan

CA. Praveen Narayan (Expert)
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01 February 2011 Dear Sir..

ma doubt s
can`t we consider sale as continuation of original buy and today`s buy as new transaction?

If so, loss per share ll be Rs.25 and cost of new share s Rs.80..

Divya Goyal

Divya Goyal (Querist)
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04 February 2011 Respected CA Praveen Sir,

As far as your query goes, I have checked the demat account and in that STT charged is of two types: on delivery and on non delivery. In the above case, where I had bought my shares one month back and sold them now bt purchased them again on the same day, I have been charged with STT against non delivery of shares, whereas in the normal course, it is STT against delivery.

So, what i can gather from the fact is that the same cannot be considered as a continuation of previous transaction and is an intraday transaction only as pointed out earlier by Sanganeria Sir.

However, what i am not able to understand is that even on this intraday transaction sale i have been charged with an STT and now on this profit I will pay a tax on a higher rate also treating this in my slab rate????

So practically i am at a loss on both the sides as i am being charged not with 15% capital gain + STT but 30% as tax + STT

Please clarify the issue.

Thanks a lot for participation and addressing this query