Tax on stocks bought with profit of day trading??

1) I have made profit of Rs.100 in day trading/ short term trading.

2) I bought shares with that Rs.100 profit.  so, no cash on hand on 31/mar/2016. holding Rs.100 of shares only.

Question is, because I am NOT holding cash on hand as on 1st april 2016, can I avoid paying tax on profit earned of Rs.100 ?  

 

Thank you.

Replies (7)

No      

Thank you for the reply.  I asked that question because, one CA told YES, and another said NO. I dont know why NO and why YES.

Thank you.

Being smaller amount, practically its YES; but legally NO.

Ok. Thank you. As an example, I said Rs.100.   Actual amount was around 12 lakhs in the year 2009-10.  I did not file return since then, now I am filing for all those old years. So after deducting around 2 lakhs for an individual, I have to pay tax on about 10 lakhs.   I was holding shares for those 12 lakhs by apr 1st of next year.  

Unless there is any query from department, you will not be able to file old returns upto FY 2013-14. Only last two years return can be filled u/s. 139(4). Good luck.

Yes sir. I received query from IT dept. asking me why I did not file returns. So I went to 2 CAs for their advice. one said YES and the other CA and you both suggsted that I must pay tax.

In that case you will be required to prepare ITR & pay tax accordingly. But you will be able to save, check properly.

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