Regarding share trading profit and tax calculation

Tax queries 4119 views 4 replies

Divakar

Others

25 Points Posted on 24 July 2013

Hi Guys,

I have 3 questions.

1. I booked some profit in share trading.. so it comes under which category? income from other sources or income from capital gains?

2. How to calculate the profit from share trading. there are several comission/charges(brokerage, service tax, SEBI turnover charges, Stamp Duty, STT) while buying and selling.

so i dont know whether do i need to deduct all or only some of that...

3. How to calculate the tax from the profit of share trading? i know that we need to calculate with respect to cost inflation index. so it would be better if someone tell the calculation formula.

Can some please help?

i have to file the return by this month end which is july 31 2013.

Thanks & Regards,

Divakar

Replies (4)

CA LOVELY ARORA

C.A. B.Com (H) Graduate

2151 Points Posted on 24 July 2013

Dear Divakar,

1. Income from share trading comes under "Income from Capital Gains".

2. Net amount (Net sales and net purchase amount) will be taken into consideration.

3. There is nothing like Cost Inflation Index (CII) while calculating Income for Shares Trading. There are only 2 things in Shares Trading.. either you will have LTCG which is exempt from Tax... or you will have STCG on which CII is not availble.

Regards,

CA Lovely Arora

ca.lovelyarora @ gmail.com

+91-9891400405

Divakar

Others

25 Points Posted on 29 July 2013

Thank you CA Lovely Arora.

1. Is there any specific percent we have to pay for share profit?

e.g., for financial year (2011-2012), i read that there was flat 15% for short term capital gain.

Not sure for last financial year (2012-2013).

2. What do you mean by Net amount? is it without any charges (brokerage, service tax, SEBI turnover charges, Stamp Duty, STT)?

Thanks & Regards,

Divakar

CA LOVELY ARORA

C.A. B.Com (H) Graduate

2151 Points Posted on 30 July 2013

Dear Divakar,

1. Yes, for short term capital gains, you have to pay tax @ 15% (for F.Y. 12-13 also).

2. For getting Net amount, refer to the Contract Notes you get on your mail/physically.
The purchase amount would include brokerages, STT, stamp duty etc... and similarly, sale amount would exclude brokerages, STT, stamp duty etc...
So, to get the net amount of your capital gains, refer to the contract notes you get on your every transaction... every purchase and sale.. there is a column in the contract note, which compute Net Sales and Net Purchase for you.... so, go for it...
Or go the website of the DP you are having account with... e.g. Sharekhan, Angel Broking, Reliance, Indiabulls etc..... you may also ask from the Representative of the same website assigned to you.
or you may browse through the website and get the amount of your Capital Gains. I have account in Sharekhan, i can explain to you how to get the amount of CG there... but not sure about other DPs.... for others, you have to do it on your own.

Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com
+91-9891400405