Need help ! about tax

#1
Hello
I have put 50 lakhs in stock market way back 3 years ago.
Now i have made it double in 3 years.now it is 0.98 Cr.
I have never withdraw any money from my trading account.
I want to know whether i dont have to or have to pay any taxes if i donot withdraw money from my trading account.
I only have to pay taxes on profit when i withdraw money from my trading account to bank account. Am i right?
If i donot willing to withdraw any money for 3 years i donot have to care about taxes right?
but after 3 yrs when i withdraw money i have to pay taxes correct?
Or income tax officers will check trnsction of every trading account?
all of the profit is by doing intraday
 
Last edited:

Subhadip

Well-Known Member
#2
Hello
I have put 50 lakhs in stock market way back 3 years ago.
Now i have made it double in 3 years.now it is 0.98 Cr.
I have never withdraw any money from my trading account.
I want to know whether i dont have to or have to pay any taxes if i donot withdraw money from my trading account.
I only have to pay taxes on profit when i withdraw money from my trading account to bank account. Am i right?
If i donot willing to withdraw any money for 3 years i donot have to care about taxes right?
but after 3 yrs when i withdraw money i have to pay taxes correct?
Or income tax officers will check trnsction of every trading account?
whether u withdraw or not, u r earning so tax filing necessary.
also u need to pay tax, as u r late so u have to pay some panelty for that also, please discuss with ur CA.

also read Zerodha Varsity taxation PDF, you will know everything.

First thing u have to know if u have income from F&O or from stock intrday or from stock long term.

If stock share hold for more than 1 yr, different taxation
 

RockyRobust

Well-Known Member
#3
Hello
I have put 50 lakhs in stock market way back 3 years ago.
Now i have made it double in 3 years.now it is 0.98 Cr.
I have never withdraw any money from my trading account.
I want to know whether i dont have to or have to pay any taxes if i donot withdraw money from my trading account.
I only have to pay taxes on profit when i withdraw money from my trading account to bank account. Am i right?
If i donot willing to withdraw any money for 3 years i donot have to care about taxes right?
but after 3 yrs when i withdraw money i have to pay taxes correct?
Or income tax officers will check trnsction of every trading account?
all of the profit is by doing intraday
If this is solely investment and no trading involved in between then when you off load your shares and withdraw money then this will come under Long Term Gains Taxation , which you may verify though a Tax Evaluator or CA for rates applicable and conditions of taxation. As far as I know there are lot of exemptions when it is concerned with LTCG from sale of shares.

This link will help

http://www.charteredclub.com/tax-on-sale-of-shares-mutual-funds/
 
#4
He has clearly mentioned in last line of his post that "all of the profit is by doing intraday", so LTCG is out of question.
Now question arises intraday in what, in derivatives or in stocks, as the taxation is different for these two categories.


But one thing is for sure, Rahul, you have to pay IT on your profits, that too along with penalty and penal interest. So better for you to consult a CA for all calculations and formalities.

BTW, it doesnt matter whether you keep your money in your trading account or transfer it to your bank account. Its your choice
 

RockyRobust

Well-Known Member
#5
If this is solely investment and no trading involved in between then when you off load your shares and withdraw money then this will come under Long Term Gains Taxation , which you may verify though a Tax Evaluator or CA for rates applicable and conditions of taxation. As far as I know there are lot of exemptions when it is concerned with LTCG from sale of shares.

This link will help

http://www.charteredclub.com/tax-on-sale-of-shares-mutual-funds/
Somehow I missed the last line of the post No: 1 by the thread starter. :eek:
So plz. ignore my above post regarding the taxation query.
 

cloudTrader

Well-Known Member
#6
Hello
I have put 50 lakhs in stock market way back 3 years ago.
Now i have made it double in 3 years.now it is 0.98 Cr.
I have never withdraw any money from my trading account.
I want to know whether i dont have to or have to pay any taxes if i donot withdraw money from my trading account.
I only have to pay taxes on profit when i withdraw money from my trading account to bank account. Am i right?
If i donot willing to withdraw any money for 3 years i donot have to care about taxes right?
but after 3 yrs when i withdraw money i have to pay taxes correct?
Or income tax officers will check trnsction of every trading account?
all of the profit is by doing intraday
In your case you have earned money in a staggered way comprising of different financial years, you will have to segregate your earnings as & when they have accrued [year wise].
However as you have not paid the taxes in the due years you might be obliged to pay tax penalty for late reporting.
Consultation with a CA will be the best option for you to calculate right amount of tax.

I would also like to add that when you are done with this case , then try to update this thread of yours' , as what steps you took, so that others could benefit from your experience.

Thanks.
 

canikhil

Well-Known Member
#7
Hello
I have put 50 lakhs in stock market way back 3 years ago.
Now i have made it double in 3 years.now it is 0.98 Cr.
I have never withdraw any money from my trading account.
I want to know whether i dont have to or have to pay any taxes if i donot withdraw money from my trading account.
I only have to pay taxes on profit when i withdraw money from my trading account to bank account. Am i right?
If i donot willing to withdraw any money for 3 years i donot have to care about taxes right?
but after 3 yrs when i withdraw money i have to pay taxes correct?
Or income tax officers will check trnsction of every trading account?
all of the profit is by doing intraday
Your intraday incomes are taxable in the year in which they were earned as speculative income. If there is any futures and options gains, the same shall be taxable as normal business income.

You shall be required to file your tax return for each of the year. Whether tax audit is applicable or not shall depend on what the exact turnover for each year. Depending on the final tax position, you may be liable for interest for delay in advance tax payments. Interest for late filing of return shall apply regardless. Penalty, if any, is a subsequent issue and you cannot account for it today.
 

suri112000

Well-Known Member
#9
I wonder how you got escaped from the purview of Taxman Eagle Eye until now?

Most of the people who have traded on intraday or positional in the last 3 years already have Taxman notices in their hands.

Lucky enough for hiding from Taxman.

Consult quickly a CA to sort out tax issues....otherwise you will be in deep trouble.
 

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