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Income tax and short term capital gain

magesh (IT) (42 Points)

17 September 2009

I have a query regarding short term capital gain tax. If my taxable income is 150000 i dont have to pay any tax since it is less that 160000. Now what if I had made a profit of 5000 rupees as short term capital gain from sale of shares. Do I need to pay a short term capital gain tax of 15% on this profit even though my total income in this case would only be 155000?

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8 Replies

GAURAV AGARWAL (CA FINAL) (76 Points)
Replied 17 September 2009

I dont think that u will hv to give any tax as:

5000-(160000-(155000-5000)) =-5000,hence not taxable.

CA Manish K Dhoot (CA, B. Com, NCFM, CPCM) (5015 Points)
Replied 17 September 2009

Agree with gaurav

BALASUBRAMANYA B N (CCI STUDENT....) (44668 Points)
Replied 17 September 2009

	Short-term Capital gains tax	Long-term capital gains tax
Sale transactions of securities which attracts STT:-	10%	NIL
Sale transaction of securities not attracting STT:-
Individuals (resident and non-residents)	Progressive slab rates	20% with indexation; 10% without indexation (for units/ zero coupon bonds)
Partnerships (resident and non-resident)	30%
Individuals (resident and non-residents)	30%
Overseas financial organisations specified in section 115AB	40% (corporate) 30% (non-corporate)	10%
FIIs	30%	10%
Other Foreign companies	40%	20% with indexation; 10% without indexation (for units/ zero coupon bonds)
Local authority	30%
Co-operative society	Progressive slab rates

CA Anurag Garg (Chartered Accountant) (339 Points)
Replied 17 September 2009

no tax

releif admissible even u/s 112 for long term capital gain also which is taxable @ 15 % flat

punam (article assistant) (56 Points)
Replied 27 October 2009

No tax is payable as the income including STCG is below Rs 160000.

Dharmesh Kumar (Accountant) (64 Points)
Replied 14 December 2009

how to identify short term capital gain on trading of shares & what are the taxes for short term gain & long term gain

vivek ananda (student) (173 Points)
Replied 14 December 2009

dharmesh, for trading in shares if the shares are listed on a stock exchange,traded through it then holding for a time gap of 1 year would be considered as long term. shares purchased and sold in a stock exchange are subject to stt(securities transaction tax ) such shares if held for 1 year or more, dont attract any capital gains u/s 10(38). if held for less than 1 year, then it is short term and gains are taxed at 15% rate.

if they are traded else where, the peroid of 3 years holding is considered as long term. they are subject to 2 options of taxation. 10% tax without indexation or 20% tax with indexation, which ever is beneficial to the assesee. anything held for less than 3 years is considered as short term.