Capital gain tax & income tax filing

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

10 November 2014 I am an individual who has quit corporate world and started full time trading in stock market.

Now, from last fy, my source of income is from stock market (both long term and short term capital gain), dividend from stocks, Bank SB & FD interest.

I want to know

1) I have filed my Income tax (ITR-2 for fy 13-14) through the java utility for the above mentioned source of income, directly at IT department's website (https://incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.html) which showed nil tax to be paid. Signed physical copy of ITR-V has been sent to the IT department & status of this in the website is still showing as Received (for more than two months). I am becoming anxious whether the IT department will say Java utility provided by IT dept was wrong and I need to cough up tax now. Can/will IT dept ask for tax even though the Java utility showed "nil" tax to be paid?

2) whether the exemption of 2 lakh is still applicable to me.

3) whether the 80C benefit of 1.5 lakh is still applicable to me.

Thanks in advance

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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11 November 2014 u have not shared full details abt ur share activities. Whether u do trading or delivery based transactions. A lot will depend upon nature of transactions

Querist : Anonymous

Querist : Anonymous (Querist)

11 November 2014 Shares: 100% delivery.

Futures and Options: 95% are delivery based. Intraday trading only on the last day of the expiry (about 5%).

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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11 November 2014 Where shares are held for more than a month, they should be treated as investment and on their sale short-term capital gain should be charged. When shares are held for less than a month, gain on them should be treated as profit from business. See Sugamchand C. Shah v. Asstt. CIT (2010) 37 DTR (Ahd ‘D’-Trib) 345
F&O transactions are no delivery based.
However by virtue of section 43(5) gain/loss arising fm F&O transactions is treated as business income/loss
CA MANOJ GUPTA
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Querist : Anonymous

Querist : Anonymous (Querist)

11 November 2014 I was under the impression that capital gain is treated either as short term or long term based on less/more than a year. Now this category of business income if shares are held less than a month is new to me. Thanks for this information.

Please clarify the main 3 queries which I have sought out in my first post.

Querist : Anonymous

Querist : Anonymous (Querist)

13 November 2014 Request clarification for my above query from any Expert please.