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Tax on gain from shares

kripal (accountant) (61 Points)

28 May 2014

I am an Individual tax payer with salary income. This year I started trade in stocks through online. please clarify my below doubts:-

1. Profit earned from intraday trading should be treated as income form Business/Profession or Short term capital gain. and how much % of tax I have to pay on these income.

2. Profit eraned from sale and purchase of stocks in less than one year. In which head profit should be menionted. Also advise % of tax.

3. Can I adjust my DP charges with profit earned.

4. My salary is Rs 260000/- andI pay house rent Rs. 72000/- pa. LIC paid is Rs.18000 pa. In this case I dont need to file ITR. But if I earn something from trading than do i have to file ITR or not.

Dear member, please clarify above doubt.

REgards

Kripal

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2 Replies

Harendra Kumar (Tax Advisor ) (1326 Points)
Replied 28 May 2014

In this regard you should have to file ITR on timely and further any income recd. by you through shares i.e. to be calculated as short/long term capital gain.

Nikhil Kaushik (Fellow CA) (85319 Points)
Replied 28 May 2014

income from intra-day trades would be covered under "income from Business/profession"

the other short term gains from share sale can also be included therein. however, you have the option of offering the same under short term capital gains.

you do need to file your tax return. And appropriate tax return shall be ITR-4.