capital gains

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vijay (Querist)
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15 July 2011 Hi,
i am vijay, 31 years, working in a firm. earning P.A 3.0 lacs ctc.
i had a share trading account with hdfc bank.
suppose if i purchase share and sell those in the same month for a profit of 10,000 what would be the tax amount limit.
last year i earn approximately 2,00,000 lacs profit through short term capital gains, through shares trade what is the procedure to collect those detials. what is the exemption limits and and how can i file ITR.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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15 July 2011 In addition to your Salary you have to pay Short term Capital Gains. This is 15%+3% on the profit earned by you. If you have not paid advance tax then interest u/s 234A, B & C is also to be paid.

The details can be procured from your Share Broker. He will issue a statement of all your transaction done through him. If the holding period is less than 10 to 15 then You might have to face some difficulties as the Assessing Officer may treat this as business income and not short term. The business income shall attract tax @30%+3%.

vijay

vijay (Querist)
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18 July 2011 Dear Sir,

Suppose i earn a profit of Rs 10000 in a year what would be my tax liability

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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18 July 2024 Hi Vijay,

Let's address your queries regarding taxation on share trading profits and filing of Income Tax Return (ITR):

### Tax on Short Term Capital Gains (STCG) from Share Trading:

1. **Calculation of Tax on Short Term Capital Gains:**
- Short Term Capital Gains (STCG) from share trading are added to your total income for the year.
- If you make a profit of Rs. 10,000 from selling shares within the same month of purchase, this profit will be considered as Short Term Capital Gains.

2. **Tax Slabs for Individuals Below 60 Years (FY 2023-24):**
- Up to Rs. 2.5 lakh: No tax
- Rs. 2.5 lakh to Rs. 5 lakh: 5% tax
- Since your annual income from salary is Rs. 3.0 lakh, and if we consider your STCG of Rs. 10,000, the total income would be Rs. 3.10 lakh.

3. **Tax Calculation Example:**
- Up to Rs. 2.5 lakh: No tax
- Rs. 2.5 lakh to Rs. 3 lakh (10,000 falls within this slab): 5% of Rs. 10,000 = Rs. 500

- Therefore, the tax liability on the STCG of Rs. 10,000 would be Rs. 500.

### Procedure for Filing Income Tax Return (ITR):

1. **Collecting Details for ITR:**
- Maintain records of all your share transactions, including purchase price, sale price, and dates of transactions.
- Use the transaction statement provided by your broker to report your capital gains accurately.

2. **Exemption Limits:**
- For FY 2023-24, individuals below 60 years of age have a basic exemption limit of Rs. 2.5 lakh. Income up to this limit is not taxable.

3. **Filing ITR:**
- File your ITR using the Income Tax Department's online portal (https://www.incometaxindiaefiling.gov.in/).
- Choose the appropriate form (ITR-2 if you have capital gains to report).
- Enter all income details, deductions (if any), and tax paid (TDS).
- Compute your tax liability based on the total income.
- Verify the details and submit your return electronically.

4. **Consultation:**
- If you have doubts or need assistance with tax calculation or filing, consider consulting a tax advisor or a chartered accountant who can provide personalized guidance.

By following these steps, you can ensure compliance with tax regulations and accurately report your income from share trading while filing your Income Tax Return.

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