sir plz tell me i deals in trading of shares in share market .....then on what limit of income or turnover I have to pay tax
which section of income tax deals with trading into shares
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share trading tax limit
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Income tax is charged over any income earned over the trading business........ not over its turn over......... Its taxable under head PGBP......
sir can you pls tell me which section of income tax says that tax is not charged over turnover of trading .....it's is chargeable only in case of profit in turnover
Turnover tax is called direct tax as per finance act, 2004.........
" Turnover Tax: A Closer Look
Mr Chidambaram has introduced, what could be rightly called, a securities transaction tax and it is not in a wider sense a "turnover-based" tax.
The memorandum to the provisions relating to direct taxes - Chapter VII and Clauses 5, 24 and 25 - provide an explanation on this issue:
"With a view to simplify the tax regime on securities transaction, it is proposed to levy a tax at the rate of 0.15 per cent on the value of all the transactions of purchase of securities that take place in a recognised stock exchange of India. This tax shall be collected by the stock exchange from the purchaser of such securities and paid to the exchequer."
Thus what becomes clear is that it is a levy on every trade done at the stock markets, whether done through a phone-based broker or an online trading firm. Thus if someone were to buy, say for example, Reliance shares, in a transaction valued at Rs 100,000, he would pay a securities transaction tax of Rs 150 on that.
Further, as the finance ministry has clarified, this tax is a direct tax and will come into effect only when the Finance Bill is passed.
Read more: https://www.rediff.com/money/2004/jul/12tax2.htm
Do you mean to say....... all direct taxes are only income tax?
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