Advance tax on profit of shares held for more than 12 months

Tax queries 233 views 6 replies

Ankit

None

75 Points Joined August 2016

Hi, consider a person 'X'. He bought shares worth Rs. 3,60,000 in April, 2015. He sold shares worth Rs. 48000 in August, 2016 and got profit of Rs.9600. Is this person liable to pay any advance tax? He will probably sell rest of the shares too soon and his profit may reach to Rs. 1,20,000. Will then he be liable for advance tax? Thanks. This person has no other source of income as he is unemployed as of now.

Replies (6)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

210838 Points Joined July 2016

Are these shares traded thr' any stock exchage? Or any STT paid while selling?

If yes, no tax liability or advance tax to be paid; as the gains over it is TAX EXCEMPT.

Ankit

None

75 Points Joined August 2016

Originally posted by : Dhirajlal Rambhia
	Are these shares traded thr' any stock exchage? Or any STT paid while selling? If yes, no tax liability or advance tax to be paid; as the gains over it is TAX EXCEMPT.

These shares are traded on NSE.

Ankit

None

75 Points Joined August 2016

Originally posted by : Dhirajlal Rambhia
	Are these shares traded thr' any stock exchage? Or any STT paid while selling? If yes, no tax liability or advance tax to be paid; as the gains over it is TAX EXCEMPT.

And yes, STT was paid on the transaction according to bill summary.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

210838 Points Joined July 2016

So, enjoy the excempt income. Not even (advance) tax liability over the gains.

Ankit

None

75 Points Joined August 2016

Originally posted by : Dhirajlal Rambhia
	So, enjoy the excempt income. Not even (advance) tax liability over the gains.

Thanks for the advice. I have one more question (if you would be okay with that), 'X' recieved dividend of Rs. 3140 in the beginning of September, 2016 from these shares. Is that also tax/advance tax exempt?