Fire your tax related queries and i would get it solved!!!

[rani2006]

diosys sir,


I had purchased some shares in 2001 @30/-..if i sale in 2007 @60/-ie after

6 years / how much tax i have to pay ? SHares income is to be added in the salary or it is taxable separately?

thanks for trouble sir.

 

[diosys]

diosys sir,


I had purchased some shares in 2001 @30/-..if i sale in 2007 @60/-ie after

6 years / how much tax i have to pay ? SHares income is to be added in the salary or it is taxable separately?

thanks for trouble sir.

Dear Rani....

There would be no tax liability provided these shares are sold on the stock exchanges and the applicable STT has been paid on the above transaction....

 

[Asia Etrader]

Here is some general tax information.

http://www.asia-etrading.com/equities/bombay_stock_exchange_equities.php#Taxation

 

[diosys]

E trader please explain what are you trying to refer...the contents are pretty old....

 

[eagertolearn]

Sir,
I am new to trading world, and want to know at what point trading becomes business as per income tax act. As far as i know STCG is 10% on profit if shares are held for less than one year, and if more than one year then capital gain is exempted. Also tax from Business is 30% after particular slab, my dilemna is that i am a swing trader and want to know do I have to pay 10% tax on my short term profits or 30% because my volume is large.
Also can i cut off short term losses from short term gains.
Thanx in advance.

 

[Asia Etrader]

E trader please explain what are you trying to refer...the contents are pretty old....

I was just following the thread heading and not the message history.

Sir,
I am new to trading world, and want to know at what point trading becomes business as per income tax act. As far as i know STCG is 10% on profit if shares are held for less than one year, and if more than one year then capital gain is exempted. Also tax from Business is 30% after particular slab, my dilemna is that i am a swing trader and want to know do I have to pay 10% tax on my short term profits or 30% because my volume is large.
Also can i cut off short term losses from short term gains.
Thanx in advance.

I think this is for the person who started the thread. I am not qualified to answer.

 

[diosys]

Sir,
I am new to trading world, and want to know at what point trading becomes business as per income tax act. As far as i know STCG is 10% on profit if shares are held for less than one year, and if more than one year then capital gain is exempted. Also tax from Business is 30% after particular slab, my dilemna is that i am a swing trader and want to know do I have to pay 10% tax on my short term profits or 30% because my volume is large.
Also can i cut off short term losses from short term gains.
Thanx in advance.

Dear Eager,

Sorry for the later reply...

I belive since your trading is in high range i suggest you file your return in Business Income....Otherwise if you wish to take the risk then proceed with the capital gain....If your case is selected for scrutiny then you might land up in trouble....

BUT one thing i wish to clarify to you is that the CBDT has clarified that a person can have two portfolios....One trading and the other for investments....So if you are able to CONCLUSIVELY divide your portfolio then do that....

Moreover short term gain are allowed to be set off from short term loss...

 

[Asia Etrader]

What about if you registered a company as a trading entity? Would the tax issue be favourable and at what point would that be? ie how much gains / income?

 

[nilesh_78]

Hello Sir,
How tax is calculated on bonus / split shares ? Can you pls explain the same

Regards,
Nilesh

 

[diosys]

What about if you registered a company as a trading entity? Would the tax issue be favourable and at what point would that be? ie how much gains / income?

Dear Etrader...

I would not suggest you to open a company for dealing in shares (presuming you are talking for your self dealing)....

It would involve a lot of cost....Both in setting it up(Rs. 15,000) , running it and on the taxes front...

A company is taxable at the flat rate of 30% whereas an indi at different slabs of rate....Further Fringe Benefit Tax is also payable on the company expenses....Then audit would be compulsory under Companies Act...Such many more costs are associated with opening and running a company...and that too without any benefit at all....

Take my advice and do not float a company if you are asking for self investment vehicle....