Hi, consider a person 'X'. He bought shares worth Rs. 3,60,000 in April, 2015. He sold shares worth Rs. 48000 in August, 2016 and got profit of Rs.9600. Is this person liable to pay any advance tax? He will probably sell rest of the shares too soon and his profit may reach to Rs. 1,20,000. Will then he be liable for advance tax? Thanks. This person has no other source of income as he is unemployed as of now.
Are these shares traded thr' any stock exchage? Or any STT paid while selling?
If yes, no tax liability or advance tax to be paid; as the gains over it is TAX EXCEMPT.
| Originally posted by : Dhirajlal Rambhia | ||
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Are these shares traded thr' any stock exchage? Or any STT paid while selling? If yes, no tax liability or advance tax to be paid; as the gains over it is TAX EXCEMPT. |
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These shares are traded on NSE.
| Originally posted by : Dhirajlal Rambhia | ||
|
Are these shares traded thr' any stock exchage? Or any STT paid while selling? If yes, no tax liability or advance tax to be paid; as the gains over it is TAX EXCEMPT. |
|
And yes, STT was paid on the transaction according to bill summary.
So, enjoy the excempt income. Not even (advance) tax liability over the gains.
| Originally posted by : Dhirajlal Rambhia | ||
|
So, enjoy the excempt income. Not even (advance) tax liability over the gains. | |
Thanks for the advice. I have one more question (if you would be okay with that), 'X' recieved dividend of Rs. 3140 in the beginning of September, 2016 from these shares. Is that also tax/advance tax exempt?
Yes, dividend of the shares also Tax-exempt, so no tax liability.
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