Tax on Income From Shares Trading

yes income from that trading will be taxable in the heads of capital gain.

even if you are NRI that will be taxable.

thaks dear,

how we can calculate exat gain for whole year (is it - diff. of total opening value of investment and value at end. ?, and gain during the year ? ) pls. help me

Hi...

Irrespective of your residential status, Any income received in India or deemed to be received in India or Accrues in India ir deemedto be accrued in India. Is Taxable...

Butyou can get benefit u/s 111A or 112 as the case may be....

First you calculate period of holding of your share.......if you sale shares after holding more than 1 year then it will be long term capital gain and that will be exempt from tax

if you sale those shares within 1 year of purchase that will be short term capital gain and that will be taxable @ 15% of the short term capital gain.

you have to go through cmpany wise.

that means  scriptt wise calculation. and not as a whole.

for example if you have shares of SBI and ITC then you have to calculate gain on both individually.

For calculating Gains...

For short term Gain   Sale Value - expenses incurred for sale(Brokerages; etc) - cost

For Long term --- You can index your cost

Thanks dear

if i calculate company wise then it not covered my loss in particular company. so how calculate exat profit

for eg. - purchased of particular comp's share 10 times in year and sold. out of that 8 times in profit and 2 times i bear loss. so net gain (gain - loss) or only gain will be taxable.

and second - if i incurred loss in trade of particular company during the year then the loss will deduct from others gain or what ?

Mr. Varun - how i know about those section. (111 A & 112)

once again thanks both of you my friends

agree with what my CA friends has said ......

 you will be taxable for net gain whether inter company or intra company that does not matter.

first you adjust your loss with the same company and after that you will have net gain or loss in the particular share.......then after that you calculate net gain or loss covering your all shares

you have to adjust  entire losses from your entire gain.

dear yashvant ,

                          first of all the question whether ur income will be taxable or not the answer to this question is "NO"  IF U HAD TRADED SUCH SHARES ON OR AFTER 1 OCT 2004 AND IF U HAD HELD SUCH SHARES FOR A PERIOD OF MORE THAN TWELVE MONTHS.THE REASONS WHY UR INCOME WILL NOT BE TAXABLE ARE AS FOLLOWS:

1.THOUGH U R A NRI U HAVE TO PAY TAX ON SUCH CAPITAL GAINS BUT IN UR CASE U GET THE BENEFIT OF SECTION 111A IF U SATISY THE CONDTION STATED BELOW.AND U DONT HAVE TO PAY TAX WHAT IS THIS SECTION WILL BE DISCUSSED LATER.

2.THE SHARES THAT U HAVE TRADED HOLDING A DEMAT ACCOUNT IN INDIA IS INCOME DEEMED TO ACCRUE OR ARISE IN INDIA AND NRI ALSO HAS TO PAY TAX ON SUCH INCOME BUT IN OUR CASE IF SECTION 111 A IS APPLICABLE IT SAYS THAT IF U HAD SOLD ANY SHARES ON OR BEFORE 1 OCT 2004 USING IR DEMAT ACCOUNT IN INDIA THEN U HAVE TO PAY STT OR SECURITIES TRANSATION TAX THIS TAX RATE VARIES ...

3 THERE R BASICALLY TWO KINDS OF CAPITAL GAINS FIRST LONG TERM CAPITAL GAIN AND SECONDLY SHORT TERM CAPITAL .. IF THE HOLDING PERIOD OF SUCH SHARES IS LESS THAN TWLVE MONTHS THEN IT IS A SHORT TERM CAPITAL GAIN AND IF MORE VICE VERSA .

IF U HAD SOLD ANY SHARES ON OR AFTER 1 OCT 2004 AND THAT SHARES WERE OF LONG TERM NATURE THEN U R TOTALLY EXEMPTED AND U ONLY HAVE TO PAY STT. BUT IF UR SHARES WERE OF SHORT TERM NATURE AND U HAVE SOLD SUCH SHARES ON OR AFTER 1 OCT 2004 THEN  ALONG WITH STT U HAVE TO PAY TAX .