Hello All,
I am raising a query regarding the treatment of capital gain/loss from investment in equity shares of an individual person.
A person has invested in equity shares through a company, named LKP Securities Ltd. That means the person has given money to LKP Securities and this company used such money to purchase and sell the equity shares of different companies. The company has sent him the capital gain/loss statement for the year 2016-17. Now, in this statement all the purchase of securities and their corresponding sale value in datewise manner and accordingly the short term gain/loss, long term gain/loss, Speculation profit/loss are given.
After listing all gains and losses, at the end of the year, in net, he has Short Term Capital Gain nearly of Rs.2 Lakhs, Long Term Capital Loss nearly of Rs.64K and Speculation (intra day or you can say fatka) profit of around Rs.6K.
Now, my queries are as follows:-
1) Whether the total short term capital gain from sale of equity shares through the above mentioned company are subject to Sec.111A and chargeable to tax @ 15%?
If so, is there any fixed deduction available from such gain like brokerage etc? [Although in that statement nothing is mentioned as brokerage charges or like that]
2) LTCG from selling of equity shares, I think, is covered under Sec.10(38) and exempt from tax, but What is the treatment of the Long Term Capital Loss? How will it be reflected in ITR? Can this loss be carried forward?
3) What is the treatment of the Speculation profit in income computation that arose from the Fatka? Whether it is to be treated as STCG and subject to U/s 111A?
4) If the person has Salary income, Other Source income of Rs.7Lakhs and Rs.2Lakhs respectively, now whether the STCG of Rs.2Lakhs(mentioned in point 1) shall be added with these incomes and then has to apply Sec.80 deduction?
Thanks for your patience! Hope, will get positive reply. Thanks again in advance.
CAclubindia
