Taxability of shares

This query is : Resolved

anshulgoel (Querist)
Follow

03 August 2011 please tell me....what is the difference between mcx and stock exchange.....

whether all the persons dealing in stock exchange or mcx whether directly or indirectly are liable to paying tax on capital gain arising from the sale of shares or commodities..or for taxation purpose the person must be registered.....???

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

04 August 2011 mcx is Multy Commodity Exchanges where derivatives of commodities are traded.
.
Stock Exchange are meant of trading in securities like shares, debentures, other securities & derivatives of shares
like futures & options.
.
For dealing in these exchange one person must be registered as a client with any of the brokers engaged in the exchanges.
.
Capital Gains or Business Income etc are
not directly paid through exchanges but the Account holder has to show such income in his own return of Income..
.
Exchanges also charges certain taxes bases on transaction values like STT, Service Tax, Stamping Charges etc.

anshulgoel

anshulgoel (Querist)
Follow

04 August 2011 sir..,
then for practical purpose.., how black money is used in dealing in shares or in mcx..

means.., the person who is not registered is not required to pay capital gain tax or he can use his black money for dealing...???

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

04 August 2011 In trading through exchanges it is riskier to use black money.

While registering as a client with any broker one has to give his PAN, Address proof and Identity proof also including his photograph. Otherwise he will not be registered.

If a client so registered deals, information in his account can be called for by the IT department.

So, an unregistered person can not carry on his trade in his own name.
If he trades in others name, the lender of the name shall have to face the legal actions.

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