Hi,
I wanted to know how is the income tax calculated on the intrday trading gains.
RITESH KOTHARI
(B.COM, FCA, DISA(ICAI))
(778 Points)
Replied 31 August 2009
SLAB RATE OF TAXATION IS APPLICABE ON THAT.
IT IS NOT TO BE TERMED UNDER STCG OR LTCG.
Kaushal
(SE)
(28 Points)
Replied 31 August 2009
| Originally posted by :VARUN | ||
| " | ur income will be calculated u/h capital gains ........ and there are two types of capital gains.. 1. LONG TERM CAPITAL GAIN - if u have paid stt on sale of shares then long term capital gain is exempt u/s 10(38). and if not paid it is taxable @ 20%. 2. SHORT TERM CAPITAL GAIN - in short term capital gain from interday trading then u have to pay a tax @ 15%. Regards, Varun Makhija |
" |
If the income is from intrday trading (as u suggested short term capital gain), then what will happen in the below scenario.
I made 200 transactions. Out of which in 150 transactions i made a profit of suppose 12,000 Rs and in the remaining 50 transactions i made a loss of 8,000 Rs. then how (on what amount) will the short term taxation of 15% is done.
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 31 August 2009
It will be treated as specualtion business income and tax as your other business income.
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 31 August 2009
Dear Kaushal
If you have traded intraday i. e. you have bought and sold shares on the same day then the same is treated as intraday gain/loss and will be treated as speculative business income from the point of view of income tax. Accounting of the same will on profit & loss basis only and the said loss can be set off against such profit only and not any other. Like you said in the eg you made profit of Rs. 12,000 and loss of Rs. 8000/- then tax will have to paid on Rs. 4000/- only at the normal slab rates. Slab rates in case of a male individual less than 65 years is as follows:
income less than Rs. 160,000 = Nil
Income from 160,000 - 300000 = (income - 160000) * .103
Income from 300000 - 500000 = (income - 300000) * .206 + 14420
Income more than Rs. 500,000 = (income - 500000) * .309 + 55,620.
If you take delivery then tax is to be paid on the net gain @ 15% like STCG and held for more than 1 year then no tax.
If the quantum of delivery transactions is more and the holding period is less then the same could be considered as your business and taxed as your business income and taxed as above as non speculation income.
RITESH KOTHARI
(B.COM, FCA, DISA(ICAI))
(778 Points)
Replied 31 August 2009
MR. KAUSHAL,
YOUR TAXABLE INCOME FROM INTRADAY TRADING WILL BE Rs.4000/- (12000-8000=4000).
THE NORMAL SLAB RATE OF TACATION WILL BE APPLICABLE.
SLAB RATE MEANS (FOR AY 2010-2011):
UPTO 1,60,000: NIL
1,60,001-3,00,000: 10%
3,00,001- 5,00,000: 20%
BEYOND 5,00,000: 30%
EDUCATION CESS:2% ON TAX
SHEC: 1% ON TAX
REGARDING SPECULATIVE & NON-SPECULATIVE: THESE ARE THE TWO DIVISION UNDER THE HEAD "PROFITS AND GAINS OF BUSINESS OR PROFESSION WHICH IS A HEAD OF INCOME ON WHICH TAX IS APPLICABLE.
ITS JUST A CLASSIFICATION OF YOUR TOTAL INCOME INTO DIFFERENT HEADS AND SPECULATIVE BUSINESS INCOME IS ONE OF THEM.
THIS CLASSIFICATION HAS TO BE DONE WHILE FILING ITS AND SHOWING YOUR INCOME AND TAX LIABILITY IN IT.
HOPE NOW YOU ARE CLEAR.
REGARDS,
CA RITESH KOTHARI
Sourav Kejriwal
(Student)
(21 Points)
Replied 26 June 2013
Sir, I wanted to know that if I do not have taxable income then am I required to file return and pay taxes on STCG from shares ????
My income do not form the sufficient amout for taxable income but I have STCG as well as LTCG along with intraday gains(speculative business). With such gains is it compusory that I have to file return/ pay taxes on STCG ?
Kindly replay soon.
I shall be really obiliged with your response
Rahul Jain
(PARTNER AT PIPARA&ASSOCIATES)
(8 Points)
Replied 23 June 2018
sir can we take this speculation income u/s 44AD UNDER presumptive taxation.
Rahul Jain
(PARTNER AT PIPARA&ASSOCIATES)
(8 Points)
Replied 23 June 2018
Rahul Jain
(PARTNER AT PIPARA&ASSOCIATES)
(8 Points)
Replied 23 June 2018
sir speculation income can be taken u/s 44AD undr presumptive taxation. if this is so then
suppose i have earned profit of rs 1000000 and have a loss of rs 50000 so my turnover for the intraday will be considered as 950000
and if i go for sec 44ad then my income @ 8 % will be 76000only that means i will not pay any tax as income is below exemption limit
so what about the earning of rs 1000000
i should pay any tax on it that seems wrong.
please provide solution for this
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