Short Term Capital Gain Tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 May 2011 Dear Sir, I am starting a new business where I would be dealing only in Intraday & Delivery Purchase & Sale of Shares & Stocks through Sharekhan. Now kindly assist me whether
(i) Should I start up the same in name of a proprietorship Firm or an individual.

(ii) Can I save Short Term capital Gains by showing a proprietorship Firm wherein stocks held would be shown as Stock in trade.

(iii) If no, what is the procedure of saving Short Term Capital Gain tax on Trading in Shares & Stocks.

I am also a partner of a pertnership firm which was opened in 2010.

Please assist me. My no is (+91) 8822196636. I also require a Chartered Accountant as my Trading would cross the Audit Limit. Plz assist me at the earliest.

Regards, Soumitra Sengupta, (Guwahati).

prasad

prasad (Expert)
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10 May 2011 hello there are nuber of subquestions are there. Let me try 2 resolve ur queries one by one.

i. Proprietorship Firm and individual are one and the same. In both the cases the income will be taxed in your own hands, So you can opt any one.

ii. If you like to show your investments as stock in trade then you will be carying on business. Then your income will be taxed at normal rates applicable to an individula.
In fact short term capital gains (shares) is taxable at Special rate @ 15%.
iii. You can save tax on on short term capital gains only from any carried forwads short term capital loss. Nothing else.