Complicated case

In your case Gift is from relative. Gift from relative is not taxable to either (both) parties under sec 56(2) of Income tax Act,1956 whatever the amount may be.

In the next situation where the amount if is invested in Stocks of registered stock exchanges & if on selling them a short term capital gain is araised, it is taxable @ flat rate of 15% . No exemption can be availed even thouh you paid STT. If you hold long term they are exempted in IT Ac..

Thanks VishnuPriyaji,

If the total short term capital gain (from stock market) in one financial year is around 1.4Lakh Rs. and other income is nil, means no salaries etc. Then what is the total tax need to be paid?

Please reply.

Best Regards,

anna

If you doesnt have any other income, definitly you can claim basic limit exemption, i.e upto Rs.1.60 lacs in case of general, Rs.1.90 Lacs in case of women & Rs.2.40 Lacs in case of senior citzens who exceeds 65 years for the AY 2010-11.

Thanks for your valuable comments.

Dear Vishnu Priyaji,

One more question, sorry due to lack of taxation knowledge I am asking silly questions.

The tax shall be calculated based on overall capital gain by selling stock or individual stock?

For example:

Share A: total profit Rs.2.0 Lakh if sell within 11 months (short-term capital gain)

Share B: total loss Rs40 thousand within 3-4 months (Short term capital loss)

Share C: total Profit Rs80 thousand within 4-5 months (Short term capital gain)

Overall Profit: Rs 2.4Lakhs.

So, do I need to pay tax on the 50 thousand rs (2.4Lakh - 1.9lakh). or  15% on Share A and Share C resp.? Assume there is no any other source of income.

Best Regards,

Anna 

Hi

As all the income mentioned by you is short term capital gains from shares, you need to calculate @ 15%.

So, here your tax for AY 2010-11 will be 2.40 lacs-1.60 lacs=0.80 Lacs x 15% =Rs.12000+3%(SC+SHEC)=Rs.12360/-

Thanks Vishnu Priya ji....