how i'd be taxed ??

#1
my only income is from buying/selling shares. and i only earn around 1-1.5 lakh per financial year. i have been in market since last 3 years and i haven't paid income tax even once. i also never submitted ITR. :confused:
all these times i was thinking that as i earn less than 2.5 lakhs, so i dont have to pay any tax. more over my broker always cuts STT and service tax on each purchase and sell. so i thought that tax was already been deducted.:confused::confused:
now one of my friend told that i would be penalized for not paying tax. :argue:
experienced members please help me out of this. suggest me what to do.
thanks in advance.:thanx:

also suggest me what do to in future so that i don't get into such situation again. please help...:thanx::thanx:
also tell me if filling ITR is a good thing, even if you don't come under tax slab.
 
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#2
You said your income is from buying/selling shares (I assume it is equity and not derivatives). But it is not clear, what you actually do. What is your holding period of shares. You tax liability will be on the basis of holding period. Or do you trade shares (equity) on intraday basis.

By the way, you can file ITR even if you do not come under tax slab.
 

wisp

Well-Known Member
#4
my only income is from buying/selling shares. and i only earn around 1-1.5 lakh per financial year. i have been in market since last 3 years and i haven't paid income tax even once. i also never submitted ITR. :confused:
all these times i was thinking that as i earn less than 2.5 lakhs, so i dont have to pay any tax. more over my broker always cuts STT and service tax on each purchase and sell. so i thought that tax was already been deducted.:confused::confused:
now one of my friend told that i would be penalized for not paying tax. :argue:
experienced members please help me out of this. suggest me what to do.
thanks in advance.:thanx:

also suggest me what do to in future so that i don't get into such situation again. please help...:thanx::thanx:
also tell me if filling ITR is a good thing, even if you don't come under tax slab.

http://www.traderji.com/taxation-ma...-tax-related-quieries-i-would-get-solved.html
 

simplebuthard

Working as Trading Assistant. Hire me !!
#5
my only income is from buying/selling shares. and i only earn around 1-1.5 lakh per financial year. i have been in market since last 3 years and i haven't paid income tax even once. i also never submitted ITR. :confused:
all these times i was thinking that as i earn less than 2.5 lakhs, so i dont have to pay any tax. more over my broker always cuts STT and service tax on each purchase and sell. so i thought that tax was already been deducted.:confused::confused:
now one of my friend told that i would be penalized for not paying tax. :argue:
experienced members please help me out of this. suggest me what to do.
thanks in advance.:thanx:

also suggest me what do to in future so that i don't get into such situation again. please help...:thanx::thanx:
also tell me if filling ITR is a good thing, even if you don't come under tax slab.
Go through this guide on Taxation for traders: http://zerodha.com/varsity/module/markets-and-taxation/
 
#6
You said your income is from buying/selling shares (I assume it is equity and not derivatives). But it is not clear, what you actually do. What is your holding period of shares. You tax liability will be on the basis of holding period. Or do you trade shares (equity) on intraday basis.

By the way, you can file ITR even if you do not come under tax slab.
yes sir i trade in equity only. generally my holding period is less than 6 months. and only 10-15% times my holding duration exceeds 12 months. and i rarely trade in intraday. so whats your suggestion now. :thanx:
 
#7
#8
yes sir i trade in equity only. generally my holding period is less than 6 months. and only 10-15% times my holding duration exceeds 12 months. and i rarely trade in intraday. so whats your suggestion now. :thanx:
If the holding period is more than 1 year, then you wont have to pay any tax on it, provided STT has been paid on it, being a Long term Capital Gain (LTCG).
However on other, where the holding period is less than 6 months, you have to pay 15% tax, being Short Term Capital gain (STCG).
 

stoch

Active Member
#9
my only income is from buying/selling shares. and i only earn around 1-1.5 lakh per financial year. i have been in market since last 3 years and i haven't paid income tax even once. i also never submitted ITR. :confused:
all these times i was thinking that as i earn less than 2.5 lakhs, so i dont have to pay any tax. more over my broker always cuts STT and service tax on each purchase and sell. so i thought that tax was already been deducted.:confused::confused:
now one of my friend told that i would be penalized for not paying tax. :argue:
experienced members please help me out of this. suggest me what to do.
thanks in advance.:thanx:

also suggest me what do to in future so that i don't get into such situation again. please help...:thanx::thanx:
also tell me if filling ITR is a good thing, even if you don't come under tax slab.
Had same situation just moved on CFD trading its fall into taxable activities, cuz you trading with offshore broker and use online payment processors like Skrill. Hotforex is best with CFDs in my view.
 

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