STCG & LTCG

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Shashank Goel (Querist)
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04 December 2007 Situation is as follows:

If someone has earned Rs. 100000/- from STCG i.e from physical delievry of shares system and in the same case someone has a loss of Rs. 75000/- from inter day speculation or u may say jobbing in share market.Will the loss from speculation be set-off with the income from physical delivery???

What is the tax rate for LTCG in shares???Is it free from tax???
Plz solve these querries...

Chinmay

Chinmay (Expert)
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04 December 2007 the income earned from physical delivery of shares i.e. Rs. 1,00,000 will come under the head "Capital Gains"
And if the loss is from intra-day (same day) transactions it will come under the head "business and profession" as speculative loss and can be set-off only from speculative incomes.
But if the loss is from inter-day tansactions then it will come under the head "capital gain" as short-term/long-term capital loss and can be set-off against capital gain.

rate of LTCG is 20%(if indeaxtion benefit is not taken then 10% in case of shares) and if STT is provided then it will be totally exempt as per sec112 of the income tax act.

Shashank Goel

Shashank Goel (Querist)
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04 December 2007 thank u very much sir for d reply...u hv helped me a lot...

Shashank Goel

Shashank Goel (Querist)
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06 December 2007