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Sale of shares

Saurabh Aggarwal (Chartered Accountant) (371 Points)

18 March 2009

Salary Income 96000

Business Income 4230

STCG on sale purchase of shares 19841 being STT paid

what will be the amount of income tax for f.y. 2007-08

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4 Replies

CA CS CIMA Prakash Somani (Landmark Group) (23502 Points)
Replied 18 March 2009

Your Total income is 96000+4230+198410 STCG (19841/10%) = Rs 298640 so your tax liability would be :

(298640-150000)= 148640 as this amount is not exceeding STCG so whole amount will be taxable @ 10% i.e. 14864.

You have already paid 19841 so you can claim refund of Rs 4977.

* I assumed that you paid STT @ 10%

CA KRIPA HARISH (CHARTERED ACCOUNTANT) (331 Points)
Replied 18 March 2009

as ur non capital gain income does not exceed basic exemption limit......u can avail a rebate...in this manner.....

Exemption Limit - (Total Income - Stcg)

the resultant figure u can deduct it from stcg

pls try in this manner if it is wrong kindly do oblige

Ankur Agrawal (CS, CA Final) (239 Points)
Replied 19 March 2009

(this is only my views)...

Prakash sir...problem is related to F.yr 2007-2008..i shd exemption shd be of Rs 1,10,000.

saurabh incometax shb be calculated in such a way.....

110000-(96000+4230) = 9770 this amount is deducted form the STCG of rs 19841 and the rest will be taxable.

in ur case tax will be (19841-9770)* 15% = 1500 (approx)

hitesh kumar (Chartered Accountant) (78 Points)
Replied 19 March 2009

Hi this is Hitesh, Mr.Prakash ji, i think you did not get the exact question, STT stands for security transaction tax, that is this query relates to section 111A, & Mr. Ankur you almost did it except the rate of Tax is 10%, Ankur as you already emphasised that the query relates to A.Y 2008-09, & 15% rate of tax relating to STCG is Applicable from AY 2009-10

Thanks

Hitesh Kumar

i.e

Prakash sir...problem is related to F.yr 2007-2008..i shd exemption shd be of Rs 1,10,000.

saurabh incometax shb be calculated in such a way.....

110000-(96000+4230) = 9770 this amount is deducted form the STCG of rs 19841 and the rest will be taxable.

19841-9770=10071*10%=App 1000