Taxation query

[dhimanhalder]

Hi

I am a salaried individual. I have recently started investing in stock. I just wanted to know if i buy and hold a stock for atleast one year then i dont pay any tax on the profits whatsoever once i sell it? Do i have to file returns for the profit or will the profit be added to my gross annual salary and be taxed?

Regards
Dhiman

 

[aca_trader]

Hi

I am a salaried individual. I have recently started investing in stock. I just wanted to know if i buy and hold a stock for atleast one year then i dont pay any tax on the profits whatsoever once i sell it? Do i have to file returns for the profit or will the profit be added to my gross annual salary and be taxed?

Regards
Dhiman

As in the scenario mentioned by you, there will be no additional tax liability. Please continue with filing your returns in the manner you have been doing so far. The profit which will be treated as LTCG will not be taxable and hence will not be added in your income. Just mention the amount of LTCG in your return and claim exemption of it.

Best Regards,
--Ashish

 

[dhimanhalder]

Thanks Ashish.

Please clarifiy one thing - "Just mention the amount of LTCG in your return and claim exemption of it". Please elaborate.

Regards,
Dhiman

 

[aca_trader]

Thanks Ashish.

Please clarifiy one thing - "Just mention the amount of LTCG in your return and claim exemption of it". Please elaborate.

Regards,
Dhiman

My Pleasure friend, any time.

I meant that when filing your return, instead of not declaring it, one should claim exemption after declaration of LTCG. For example, while filling the Saral Form, you should write in para 18 (inner colum) , LTCG-- rs. 100000 (Exempt u/s. 10(38). The amount in outer column will be shown as "NIL".
Hope it's clear now.

Best Regards,
--Ashish

 

[dhimanhalder]

My Pleasure friend, any time.

I meant that when filing your return, instead of not declaring it, one should claim exemption after declaration of LTCG. For example, while filling the Saral Form, you should write in para 18 (inner colum) , LTCG-- rs. 100000 (Exempt u/s. 10(38). The amount in outer column will be shown as "NIL".
Hope it's clear now.

Best Regards,
--Ashish

Ok now i get it. Thank you once again.

Regards
Dhiman

 

[tkroys]

Can any member suggest a software which will atomatically calculate the STCG after taking into account the cost of brokerages, STT, & other charges etc.
Thanks
tkroys

 

[akh024]

Try apnamoney.com, 15 days trial and there after subscription. It works well but one must verify the output carefully to be sure.

 

[tintin8801]

hello
please let me know how much tax i have to pay for short term profit[within one year] if i am a 30% tax payer

 

[mirji]

Hi,
It is 10 % only in respect of Shares sold thru a recognised Stock Exchange and STT is collected by your Broker vide Sec 111A


Shashikant

 

[nanigopal_bh]

Kindly enlighten me if stamp duty and transaction tax (charges) in resspect of share transactions under cash and derivative seqments attract service tax.