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Income tax and short term capital gain

magesh (IT) (42 Points)

17 September 2009

I have a query regarding short term capital gain tax. If my taxable income is 150000 i dont have to pay any tax since it is less that 160000. Now what if I had made a profit of 5000 rupees as short term capital gain from sale of shares. Do I need to pay a short term capital gain tax of 15% on this profit even though my total income in this case would only be 155000?

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8 Replies

GAURAV AGARWAL (CA FINAL) (76 Points)
Replied 17 September 2009

I dont think that u will hv to give any tax as:

5000-(160000-(155000-5000)) =-5000,hence not taxable.

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CA Manish K Dhoot (CA, B. Com, NCFM, CPCM) (5015 Points)
Replied 17 September 2009

Agree with gaurav

BALASUBRAMANYA B N (CCI STUDENT....) (44679 Points)
Replied 17 September 2009

	Short-term Capital gains tax	Long-term capital gains tax
Sale transactions of securities which attracts STT:-	10%	NIL
Sale transaction of securities not attracting STT:-
Individuals (resident and non-residents)	Progressive slab rates	20% with indexation; 10% without indexation (for units/ zero coupon bonds)
Partnerships (resident and non-resident)	30%
Individuals (resident and non-residents)	30%
Overseas financial organisations specified in section 115AB	40% (corporate) 30% (non-corporate)	10%
FIIs	30%	10%
Other Foreign companies	40%	20% with indexation; 10% without indexation (for units/ zero coupon bonds)
Local authority	30%
Co-operative society	Progressive slab rates

CA Anurag Garg (Chartered Accountant) (339 Points)
Replied 17 September 2009

no tax

releif admissible even u/s 112 for long term capital gain also which is taxable @ 15 % flat

punam (article assistant) (56 Points)
Replied 27 October 2009

No tax is payable as the income including STCG is below Rs 160000.

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Dharmesh Kumar (Accountant) (64 Points)
Replied 14 December 2009

how to identify short term capital gain on trading of shares & what are the taxes for short term gain & long term gain

vivek ananda (student) (173 Points)
Replied 14 December 2009

dharmesh, for trading in shares if the shares are listed on a stock exchange,traded through it then holding for a time gap of 1 year would be considered as long term. shares purchased and sold in a stock exchange are subject to stt(securities transaction tax ) such shares if held for 1 year or more, dont attract any capital gains u/s 10(38). if held for less than 1 year, then it is short term and gains are taxed at 15% rate.

if they are traded else where, the peroid of 3 years holding is considered as long term. they are subject to 2 options of taxation. 10% tax without indexation or 20% tax with indexation, which ever is beneficial to the assesee. anything held for less than 3 years is considered as short term.