Rate of tax on speculation profit on shares trading

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Suraj (Querist)
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02 May 2011 If the person has only speculative profit during the year, then how to show this in the IT return? What will be Rate of tax?

Also I wish to know following:
Suppose, speculative profit on share trading for entire year 2010-11 comes out to Rs. 10000 which is assessed now. No tax is paid till date. Whether the advance tax was required to be paid earlier?? If not paid whether Interest is required to be paid? what will be the rate? How is the same calculated? Tax payer is an individual.

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
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03 May 2011 speculative profit is subject to normal rate of taxation.No special tax rate applies. it depends u[pon your income,gender and age. assuming you are male below 65 years, then rate of tax is-upto 160000- nil,160000 to 500000= 10%on above 1.6 lac+ edu cess @2%on tax amt + hr. edu cess 1%on tax amt.,500000-800000=34,000+ 20% of above 3.00lac+ edu cess 2%on tax amt.+hr. edu.cess 1%on tax amt.,above 8,00,000 94000+ 30%of above 8Lac + 2% edu Cess on tax amt + 1% hr. edu cess on tax amt.

no tax on income of Rs. 10000 if you are not having other income.if having other income too then add Rs. 10000/= in your other income and then calculate.

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Suraj

Suraj (Querist)
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03 May 2011 Dear Sir,
STC Loss on Shares = Rs. 545000
Speculative Profit = Rs. 234500
This means STCL of Rs. 545000 can be carried f/wd for next 8 years and
Rs. 243500 of speculative profit on shares will be taxed as per normal tax slab rates for individual.
Under which head this gain & loss needs to be shown? Which ITR to be used??

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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03 May 2011 lOSS WILL BE SHOWN AS CAPITAL LOSS
GAIN WILL SHOWN AS SPECULATIVE GAIN\
ITR-4 SHOULD BE FILED

CA MANOJ GUPTA
JODHPUR
09828510543

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Suraj

Suraj (Querist)
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04 May 2011 In ITR - 4, What will be the nature of business to be chosen for the purpose of showing this STCL and Speculation Profit? This person is individul.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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20 July 2025 Use ITR-4 for FY 2010–11 (AY 2011–12), since it involves business income.
Under the “Business and Profession” section:
Choose Nature of Business Code: Use Code 0204 (Trading – Others), or Code 0901 for other financial services, depending on the ITR version.
Mention your speculative profit (₹10,000) under “No Accounts Case” if books aren’t maintained.

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