Sold shares
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
22 March 2011
i Sold shares of reliance industries and other companies after 6 months and made a profit of Rs. 40,000. I did not have any other income from any other source. Since my total income was below Rs. 1,60,000 will i have to pay tax on Rs. 40,000? A friend says that i have to pay a short term capital gain tax of 15% even if my total income is below Rs 1,60,000. Please help sir.
22 March 2011
If your total income is below Rs.1,60,000, you need not pay tax on the Short Term Capital Gain.
22 March 2011
Firstly in your case no need to pay any tax.
However if you have any income more than maximum amount not chargeable to tax then following provisions apply.
If total income includes Short term capital gain and the Income other than Capital gain falls short of amount not chargeable to tax, then the assessee can shift so much amount of capital gain to other income so as to make other income equal to Maximum amount not chargeable to tax.
Eg:
Taxable Income Rs. 200000.00 ( including capital gain on shares of Rs. 60000.)
Now if we see the Total income excluding capital gain is Rs. 140000.00.
Now what assessee can do is he will shift Rs. 20000 from capital gain to make his total income equla to maximum exemption limit.Therefore he need to pay tax only on Rs. 40000.
Hope your query is solved.
However if you have any income more than maximum amount not chargeable to tax then following provisions apply.
If total income includes Short term capital gain and the Income other than Capital gain falls short of amount not chargeable to tax, then the assessee can shift so much amount of capital gain to other income so as to make other income equal to Maximum amount not chargeable to tax.
Eg:
Taxable Income Rs. 200000.00 ( including capital gain on shares of Rs. 60000.)
Now if we see the Total income excluding capital gain is Rs. 140000.00.
Now what assessee can do is he will shift Rs. 20000 from capital gain to make his total income equla to maximum exemption limit.Therefore he need to pay tax only on Rs. 40000.
Hope your query is solved.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- ITC temporary reversal and reclaim
- TDS U/S. 194NF
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
