Short term capital gain from share

This query is : Resolved

naresh (Querist)
Follow

24 April 2022 Sir
I have taxable income below 5 lakh but during the year have earned short term capital gain from sale of shares rs 200000
How to calculate income tax

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

24 April 2022 15% tax payable on 200000 short term capital gains.

naresh

naresh (Querist)
Follow

26 April 2022 Thanks for reply sir
But by taxable income is below 5 lakh. Am i still need to pay tax. Can i treat this short term capital gain as business income and need not required to pay tax as i am below taxable limit
If yes then what are pros and cons of treating short term capital gain as business income

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

26 April 2022 Yes, tax audit applicable if turnover exceed one crore. Higher tax applicable in case of higher profits.

CA Puja Sharma

CA Puja Sharma (Expert)
Follow

26 April 2022 When the total income of an individual or HUF is upto Rs. 5,00,000 then he claim rebate u/s 87Q upto Rs. 12,500.
In your case, since your STCG is Rs. 2,00,000, a higher tax rate will apply in your case, and you have to pay tax.

naresh

naresh (Querist)
Follow

30 April 2022 Thanks for reply
Madam my total income including STCG is below 5 lakh
Am i need to pay income tax
If yes at what rate
Please

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now