Tax Liability

Dear Sir,

My wife have a Portfolio Management Scheme with ICICI Prudential. She had transferred Equity Shares of the value of 25 Lakh to the asset management company in July 09. She has not received any income from the company against PMS in his Bank account in the last FY 09-10. Now she has received Profit and Loss account for the FY year 09-10 wherein under the Income and Expenditure Account the following figures are given:-

Income & Gains

Dividend                                       11,408.40
Interest                                                0.00
Net Gain on Sale of Securities     217,150.47    
Miscellaneous income                          0.50
TOTAL                                       228,559.37

Expenses & Losses
Audit Fee                                         750.00
Management Fee                        105,469.49
Custody Fee                                   1865.18
Bank Charges                                      0.00
DEMAT CHARGES                           846.50
DP Transaction Charges                  2206.00
Other expenses                                    0.00
STP Charges(FT)                                 66.92
Securities Transaction Tax              10931.74
Derivative Clearing Charges                 144.22
TOTAL                                       122,280.05

Surplus/(Deficit) for the year       106,279.32

I would request you to please advise with respect to TAX Liability of my wife with regard to above income. She otherwise has no income except for interest from FD amounting to Rs 50473.95 wherein TDS of Rs 4599 have already been deducted and Short term gain from sale of Shares (STT PAID) 22404.35.
Your expert advice in the matter will be highly appreciated.
Thanks
P Chander

Replies (1)

Dividend is exempt u/s 10(34). As far as net gain on sale of securities is concerned, it has to be divided in two parts i.e short term(less than 12 months) and long term(more than 12 months). on short term the rate is 15% and on long term it is exempt u/s 10(38) assuming all the conditions are met.

interest on FD will be charged as per normal slab.

 

if you can gave be me the bifurcation of short term and long term, i will exactly give you the tax obligation.

 

Regards

Piyush

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