04 Sep 2008 16:09 STCG and the income tax liability

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Rashi (Querist)
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05 September 2008 Hi,
I am a salaried employee with annual salary of 6 lac/annum. I was involved in the following trading in the NSE stock market. I want to know the STCG and the income tax liability. Please help in determining the exact STCG and tax on it.

Trade-1 - Bought 10 shares of Reliance Industries on 20-05-2008:
Rate per share: 2100
Brokerage: 157.50
Service Tax: 19.50
STT: 26.25

Trade-2 - Sold 10 shares of Reliance Industries on 25-06-2008:
Rate per share: 2200
Brokerage: 165
Service Tax: 20.40
STT: 27.50

RAJAN GUPTA

RAJAN GUPTA (Expert)
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13 September 2008 STCG will be calculated as under:

22000=gross sale 2200*10
185.40=less service tax and brokerage
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21814.60 net sale price(a)
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21000= basic purchase2100*10
167 =add exp brok+stax
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21167 total purchase price(b)
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647.60 profit (a)- (b)
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stt is not be included in cost or reduced from the sale price

tax due on 647.60 flat 15 % for fy 2008-09
=97.14 plus surcharge and cess as applicable

note:STCG will be calculated on full year transactions ,suppose you have a loss in other share you can adjust loss from that shares and net loss/profit from all shares will be taxable .

moreover if this question is not hypothetical than you are paying much higher brokerage than normally in the market .you are paying 75p/1000 where as the delivery rate in market is as low of 25p/1000 ,i think u are using icici brokerage ,use new era indiainfoline or india bulls

Rashi

Rashi (Querist)
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15 September 2008 Hi Rajan,
Thanks for the responce. Now I am very much clear with the calculation of STCG.

I have one more doubt. In ITR-2 form, the section 'Short-term capital gain' is very complicated. Please help me in understanding how to fill the following form with the calculations you have just explained.

A. Full value of consideration =?
B. Deductions under section 48
B1. Cost of acquisition = ?
B2. Cost of Improvement = ?
B3. Expenditure on transfer = ?
B4. Total = B1 + B2 + B3 = ?
C. Balance = A - B4 = ?

Thanks,
Rashi

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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17 May 2012 A. Full Value of consideration = 22,000
B.
B1. Cost of acquisition = 21,167
B2. Cost of improvement = NIL
B3. Expenditure on transfer = 185.40

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