27 September 2011
I am salaried person. Presently, I fill up income tax return (ITR)-1 form. Recently, I opened a demat account and was allotted some shares in an initial public offers (IPO). If I sell these shares and pay the securities transaction tax (STT). Will I have to pay short-term capital gain tax? Should I continue to fill ITR-1? Or should I use some other form? If I sell the shares and pay STT after one year, long-term capital gain tax has to be paid. Do I continue to file my return though ITR-1 form?
27 September 2011
ITR-1 is applicable to individuals with only salary and interest income. In case of salaried person, they must file ITR–1. But if a salaried person also has capital gain income, then, ITR–2 is to be filed. In ITR-2, short-term capital gain tax is to be shown under, ‘Capital gain' in the CG schedule.
If the assessee sells the shares and pay STT after a gap of one year, then long-term capital gain, which is exempted under Section 10(38) of the Income Tax Act, 1961, is to be shown under EI (exempt income) schedule.
27 September 2011
in case of STCG on shares, if the share are equity shares and stt has been paid then u will have to pay tax at special rate of fifteen percent
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