Capital gains

This query is : Resolved

Gubba B V N Maniknata (Querist)
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04 July 2013 Sir

i am doing individual tax computation i came a situation that my client is doing short sale of securities please tell me the tax implication as early as possible

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
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04 July 2013 SHORT SALE OF SECURITIES SHALL BE COMPUTED SEPARATELY. IT IS REQUIRED TO GET CERTIFIED BY THE CA IN CASE, THE TURNOVER IS EXCCED THE LIMIT PRESCRIBED US. 44AB.

IN CASE OF TURNOVER IS LESS THAN LIMIT PRESCRIBED BY THE 44AB, IT IS TAXABLE AT THE RATE OF 15% AS SHORT TERM CAPITAL GAIN

TUNOVER MEANS, DIFFERENCE BETWEEN THE PURCHASE VALUE AND SALE VALUE.

Gubba B V N Maniknata

Gubba B V N Maniknata (Querist)
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04 July 2013 Thanq

For Calculating Turnover all purchases and sales needs to consider or short sale only needs to consider ?

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
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04 July 2013 For delivery based:
If holding of the securities is less than one year then it will treated as short term capital asset[tax rate 15%] and holding is more than one will be treated as long term capital asset[tax rate is 20%].

For non delivery based:
all securities shall be treated as short term capital asstet

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