Taxability of income

658 views 2 replies

Hi,

My query is regarding capital gains & tax liability thereon.

Suppose, status of A is -Major individual(not senior citizen) has joint DEMAT account with B wherein first name is of A. A is not having any source of income but B is earning income by way of other sources etc. A invests in shares (in listed shares on recognised stock exchange) and makes short term capital gains which total amounts to less than 10000. since A is not having any other income his total income will fall below slab & Short term capital gains are taxed as per slab rates, this is being gains on shares will it chargeable to tax? Is A is required to pay any tax , if any How? Should A file the IT return? 

regds 

Replies (2)

Dear Sonal,

Short Term Capital gain is taxed at Flat Rate specified by CBTD.

In case of an individual or HUF, being a resident, where the total income as reduced by such short term capital gains is below the basic exemption limit, then the short term capital gain shall be reduced by the amount of basic exemptiom limit not exhausted by any other income and only the balance short term capital gain shall be chargeable to tax at the rate specifie by CBDT.

So in present case A will not be taxed as STCG is below basic exemtion limit.

Please reply if you find else to update my knowledge,

Regards,

Prakash....

Dear Sonal,

Mr Prakash is right this way.

STCG taxed as Flat rate @ 15%

But it should not be taxable if assesse total income arises only through the STCG from share it has allowed basic exemption limit form such income but it has not allowed any Deduction under Chapter VI from such income.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
29 June 2026
Accountant (Finance & Compliance)

TRIEYEZ

Kolkata

CA

View Details
Company
ARTICLESHIP 30 June 2026
2 posts Article assistant and Articleship completed students

Chirag N Shah & Associates

Mumbai

CA Inter

View Details
Company
23 July 2026
Semi qualified CA

Garg Bros & Associate CA

New Delhi

CA Inter

View Details
Company
06 July 2026
Accountant

Agarwal Anoop and Associates

Noida

CA Final

View Details
Company
ARTICLESHIP 16 July 2026
CA Article

Pipara & Co. LLP.

Mumbai

CA Inter

View Details
Company
16 July 2026
Manager - Finance & Accounts

Aliens Group

Hyderabad

CA Final

View Details
Company
ARTICLESHIP 11 July 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
05 July 2026
Financial Controller

NovumLake Partners

Mumbai

CA

View Details