01 March 2017
A professional person earn short term income from share market. Which yearly income is not taxable. Than short term income from share market is taxable or not. If yes, then what is the percentage of taxation.
01 March 2017
In case the short-term capital gains were on account of listed equity shares which were sold on a stock exchange or equity-oriented mutual fund, then the provisions for tax calculations as per section 111A of the Income Tax Act provide that 15% tax is payable by non-residents on a flat basis without getting any benefit of the initial exemption limit of Rs 2,50,000. the basic exemption limit is available only for resident individuals and HUFs, and not for any other entities.
Short term capital gain on shares is taxable at 15% flat rate. But as you mentioned total income is below exemption limit you can claim balance exemption limit from this gain and pay tax on balance gain if any @15%. For eg. Total income Rs.200000(excluding short term gain), short term gain Rs.60000. as basic exemtion limit is 250000. So on balance rs.10000 tax is to be paid @ 15%
03 March 2017
Thanks sir for your valuable early reply. But I am totally confused that which answer is right no.1 or no.2 please help me !! 1.In case the short-term capital gains were on account of listed equity shares which were sold on a stock exchange or equity-oriented mutual fund, then the provisions for tax calculations as per section 111A of the Income Tax Act provide that 15% tax is payable by non-residents on a flat basis without getting any benefit of the initial exemption limit of Rs 2,50,000. the basic exemption limit is available only for resident individuals and HUFs, and not for any other entities.
2. Short term capital gain on shares is taxable at 15% flat rate. But as you mentioned total income is below exemption limit you can claim balance exemption limit from this gain and pay tax on balance gain if any @15%. For eg. Total income Rs.200000(excluding short term gain), short term gain Rs.60000. as basic exemtion limit is 250000. So on balance rs.10000 tax is to be paid @ 15%
03 March 2017
Mr. Kaviraja is explaining that in case of non resident individual i.e. NRI benefit of basic exemption limit can not taken. But in case of resident indian individual benefit of exemption limit can be taken. In your case you didi not mention the professional is NRI. HENCE, my answer was based on assumption that assessee is resident individual. So i mentioned benefit of basic exemption limit can be taken.
I hope now things would be clear? If not please feel free for any further query
CAclubindia
