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Income from other sources & gst & ltcg

apro (TaxPayer) (49 Points)

27 February 2018

I am an Individual tax payer, i work for a private company. i do trading at BSE through ICICIDirect.com. when i sell shares ICICIDirect charges GST. when i am paying GST, do i need to declare the profit from trading in my returns as income from other sources and pay for LTCG also ?

my question is why pay for GST then declare income from other sources and also LTCG ?

please advise

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8 Replies

(Guest)

While calculating capital gains, you need to consider charges incl. GST.

e.g.

Sale: 1 lac (charges: 10 incl. tax)

Purchase: 97 K (charges 9 incl. tax)

Capital gain: 1 lac - 97 K - 10 - 9 = 2981.

Bharath Soni (Chartered Accountant) (108 Points)
Replied 27 February 2018

I understand that there can't be 2 levies of charging section i e Income from other source as well as Capital gains.
Kindly If you could re assess the charging section based on your case , which iam not completely aware.
You will be able to compute the tax under respective head.
Thanks
Revert for clarification s.

apro (TaxPayer) (49 Points)
Replied 01 March 2018

can i get a clear response please ?

my question is simple. when my broker is charging GST on my profit after selling my shares do i have to pay tax like LTGC and declare profit as income from other sources when filing IT returns ?

(Guest)

You have to declare it as capital gains.

apro (TaxPayer) (49 Points)
Replied 01 March 2018

Originally posted by : Manish
	You have to declare it as capital gains.

pay GST ? pay income tax ? pay tax on LTCG ? really ??

if i buy stock for 1,00,000 and sell for 110,0000 make a profile of 10,000 , how much should i pay as LTCG ?

if i make loos do i have to declare LTCG ?

(Guest)

Don't be surprised with the taxes. We pay taxes in our daily life many times, directly or indirectly. About the gain, if it is long term: no income tax, if short term: added to your other income and charged as per tax slab rates. If there is loss, only short term can be adjusted with your other income like salary, house property, business, etc.

apro (TaxPayer) (49 Points)
Replied 01 March 2018

Originally posted by : Manish
	Don't be surprised with the taxes. We pay taxes in our daily life many times, directly or indirectly. About the gain, if it is long term: no income tax, if short term: added to your other income and charged as per tax slab rates. If there is loss, only short term can be adjusted with your other income like salary, house property, business, etc.

consider GST is added for every buy and sell of shares

if i buy stock for 1,00,000 and sell for 110,0000 make a profit of 10,000 , how much should i pay as LTCG ? and how much ?

again

if i buy stock for 1,00,000 and sell for 90,0000 make a loss of 10,000 , how much should i pay as LTCG ? and how much ?