Short term income from share market
This query is : Resolved
01 March 2017
A professional person earn short term income from share market. Which yearly income is not taxable. Than short term income from share market is taxable or not. If yes, then what is the percentage of taxation.
01 March 2017
In case the short-term capital gains were on account of listed equity shares which were sold on a stock exchange or equity-oriented mutual fund, then the provisions for tax calculations as per section 111A of the Income Tax Act provide that 15% tax is payable by non-residents on a flat basis without getting any benefit of the initial exemption limit of Rs 2,50,000. the basic exemption limit is available only for resident individuals and HUFs, and not for any other entities.
Message likes :
1 times
02 March 2017
Hello Mr. prabhakar,
Short term capital gain on shares is taxable at 15% flat rate.
But as you mentioned total income is below exemption limit you can claim balance exemption limit from this gain and pay tax on balance gain if any @15%.
For eg. Total income Rs.200000(excluding short term gain), short term gain Rs.60000. as basic exemtion limit is 250000.
So on balance rs.10000 tax is to be paid @ 15%
Short term capital gain on shares is taxable at 15% flat rate.
But as you mentioned total income is below exemption limit you can claim balance exemption limit from this gain and pay tax on balance gain if any @15%.
For eg. Total income Rs.200000(excluding short term gain), short term gain Rs.60000. as basic exemtion limit is 250000.
So on balance rs.10000 tax is to be paid @ 15%
Message likes :
1 times
03 March 2017
Thanks sir for your valuable early reply. But I am totally confused that which answer is right no.1 or no.2 please help me !!
1.In case the short-term capital gains were on account of listed equity shares which were sold on a stock exchange or equity-oriented mutual fund, then the provisions for tax calculations as per section 111A of the Income Tax Act provide that 15% tax is payable by non-residents on a flat basis without getting any benefit of the initial exemption limit of Rs 2,50,000. the basic exemption limit is available only for resident individuals and HUFs, and not for any other entities.
2. Short term capital gain on shares is taxable at 15% flat rate. But as you mentioned total income is below exemption limit you can claim balance exemption limit from this gain and pay tax on balance gain if any @15%. For eg. Total income Rs.200000(excluding short term gain), short term gain Rs.60000. as basic exemtion limit is 250000. So on balance rs.10000 tax is to be paid @ 15%
1.In case the short-term capital gains were on account of listed equity shares which were sold on a stock exchange or equity-oriented mutual fund, then the provisions for tax calculations as per section 111A of the Income Tax Act provide that 15% tax is payable by non-residents on a flat basis without getting any benefit of the initial exemption limit of Rs 2,50,000. the basic exemption limit is available only for resident individuals and HUFs, and not for any other entities.
2. Short term capital gain on shares is taxable at 15% flat rate. But as you mentioned total income is below exemption limit you can claim balance exemption limit from this gain and pay tax on balance gain if any @15%. For eg. Total income Rs.200000(excluding short term gain), short term gain Rs.60000. as basic exemtion limit is 250000. So on balance rs.10000 tax is to be paid @ 15%
03 March 2017
Mr. Kaviraja is explaining that in case of non resident individual i.e. NRI benefit of basic exemption limit can not taken. But in case of resident indian individual benefit of exemption limit can be taken.
In your case you didi not mention the professional is NRI.
HENCE, my answer was based on assumption that assessee is resident individual. So i mentioned benefit of basic exemption limit can be taken.
I hope now things would be clear? If not please feel free for any further query
In your case you didi not mention the professional is NRI.
HENCE, my answer was based on assumption that assessee is resident individual. So i mentioned benefit of basic exemption limit can be taken.
I hope now things would be clear? If not please feel free for any further query
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CAPITAL GAIN REDEVELOPED FLAT
- Multiple payment of self assessment tax for A Y 2025-2026
- REGARDING ITR FILING QUESTION
- Requirement under FEMA &RBI
- DUE DATE FOR ITR FILING
- ITC BENEFIT ON BROKRAGE PAID
- Correction in TDS return New Traces Portal
- Sale of Mutual Funds In Diffirent Financial Years
- Gst reverse charge mechanism to be claimed in the month of payment
- TDS NOT YET CREDIED
- GST REGISTRATION REQUIRED TO DIAGNOSTIC UNIT
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
