Tax on income from salary plus equity
This query is : Resolved
27 March 2017
Dear Expert,
LTCG is tax free and STCG is taxable at 15%.
I am a service person with taxable income of around 7 Lakhs (after exemptions of 80C, Home Loan Interest etc).
At 15%, on a STCG of 1L, the payable tax will be 15000. However, if I declare this income in SARAL form under "income from other sources", the tax is automatically calculated depending upon the overall calculation of taxable income.
Please clarify where this income should be declared (in SARAL or elsewhere) and how much tax is to be paid etc.
Best regards,
Rakesh Dubey
LTCG is tax free and STCG is taxable at 15%.
I am a service person with taxable income of around 7 Lakhs (after exemptions of 80C, Home Loan Interest etc).
At 15%, on a STCG of 1L, the payable tax will be 15000. However, if I declare this income in SARAL form under "income from other sources", the tax is automatically calculated depending upon the overall calculation of taxable income.
Please clarify where this income should be declared (in SARAL or elsewhere) and how much tax is to be paid etc.
Best regards,
Rakesh Dubey
27 March 2017
If STCG is on sale of listed security only then tax rate is 15%, otherwise normal slab will apply.
If you will declare income in SARAL your STCG if Taxable at 15% will be tax in SARAL at higher rate, so it is better to file ITR-2.
As per data,
Tax will be around Rs 61800 (Tax on 6lakhs at slab and 1 lakh @15%) (if STCG is on sale of listed securities.)
Tax will be around Rs 66950 (Tax on 6lakhs at slab and 1 lakh @15%) (if STCG is on sale of unlisted securities or if STCG is on listed securities and you declare under SARAl).
So, if you declare in SARAl there is direct impact of excess tax of Rs.5150
If you will declare income in SARAL your STCG if Taxable at 15% will be tax in SARAL at higher rate, so it is better to file ITR-2.
As per data,
Tax will be around Rs 61800 (Tax on 6lakhs at slab and 1 lakh @15%) (if STCG is on sale of listed securities.)
Tax will be around Rs 66950 (Tax on 6lakhs at slab and 1 lakh @15%) (if STCG is on sale of unlisted securities or if STCG is on listed securities and you declare under SARAl).
So, if you declare in SARAl there is direct impact of excess tax of Rs.5150
27 March 2017
Thank you.
In both cases, you have mentioned "tax on 6lakhs at slab and 1 lakh @15%". If it is declared in SARAL it should be "tax on 7L at slab". Right?
Can the taxpayer himself decide where to declare it (SARAL or some other place)?
In both cases, you have mentioned "tax on 6lakhs at slab and 1 lakh @15%". If it is declared in SARAL it should be "tax on 7L at slab". Right?
Can the taxpayer himself decide where to declare it (SARAL or some other place)?
27 March 2017
yes, its 7 lakhs on slab by mistake it remains but tax figure is according to slab, No, we have to go by act since income is from sale of shares so it should be in ITR-2 and not in saral form because SARAL form is only for those individuals who has incoem from salary and other sources (interest only) and you have stcg so itr-2 is applicable
27 March 2017
Thank you Mr. Jain.
27 March 2017
Does listed securities means everything that is traded on the exchange (e.g. Future & Options, Commodities etc.) ?
27 March 2017
Listed securities covers only shares debentures and bonds, derivative instruments i.e future and options are not covered under listed securities
27 March 2017
Thanks. What is the tax implication if real estate (house, land etc) is sold after few years?
28 March 2017
This will results in capital gains depending upon holding period and if capital gains are long term in nature then exemption are also available for the same
28 March 2017
Thanks.
If an individual has NO income other than Capital Gain (i.e. no salary or business income), what will be tax implication for him?
If an individual has NO income other than Capital Gain (i.e. no salary or business income), what will be tax implication for him?
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