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

Did you have a profit or a loss on the entire transaction (Sale - Purchase- Interest Paid) ??

Re: pls. reply me soon

Hi Diosys
one more time i need your help.i thought PO mis income is not taxable but i see in various sites that it is taxable.is that mean that 12x 6000=72000 interst income will be added with the total income of my brother in law?
2. In that case if my brother in law shows this 9 lakh amount as a gift to his wife and then they make a joint MIS with my sister as first holder and my brother in law as second holder and the whole income is shown as the income of my sister and as she has no other source of income ,can this 72000 rs. may be saved from tax.
pls. reply me soon.
best rgds.
Raja

Hello Diosys,

I am a salaried emplyoee. I excersied ESOP option alloted to me in 2007 by taking a bank loan for the entire amount.
I recently sold my shares and settled the loan in full.

I have the following doubts.

1. Since I have sold the shares after 2 years I will not incur any long term captital gains tax. Right?
2. This loan might be treated as a personal loan. I have paid interest around 3.5 lacs for this loan. Can I claim any type Tax deduction for this interest paid? If so under what section would the caim be? Please clarify.

Thanks
Murali
Yes, I had profit after settling the loan in full including the interest. Also I am left with some more shares which I am yet to sell.
I fall under the highest tax slab. I also have a home loan and am claiming rebate of incometax for that loan.
I want to know if i can include this personal loan & interest amount too for tax rebate.

Re: pls. reply me soon

Yes it should be taxable as normal income. Since you had specific information that it is not taxable hence i told you to show in Income claimed exempt from tax....Anyways, it should be taxable...

Point is in whose hand should it be shown. We have two options in this case.

Option 1) as told by you....The problem in this case is that (till the husband is alive) since this money is gifted from Husband it technically qualifies for getting clubbed in your brother's hand under Sec 64. Hence the income accrued on this should be added to his income till he is alive. This may or may not happen because it would depend if this case is selected for scrutiny. If it is not selected then well and good simply show this income in the hand of the sister.

Option 2) Brother gifts this money to his sister / mother through an account payee cheque or cash. Inturn the mother / sister transfers the money to the wife's account thus avoiding the above situation of getting clubbed under sec 64. I would prefer this option is it is possible to do through an account payee cheque.

Take a call which option can be availed....

If there has been a profit then it makes no sense to set off the interest paid...It would not be allowed since the proceeds where not invested for a taxable income...Hence claim long term capital gain and pay no tax on the sold shares.

Thanks for the inputs diosys. My sincere appreciation for this thread. It is very very informative for many people

Thanks
Murali

suppose if i trade 500000 daily, means i buy and sell shares of that amount daily.... my turnover will be 500000(buy) + 500000(sell) ?

and wont it be a big task to calculate the total **** you did in the whole year?

and what if i calculate my expenses of laptop, electricity, net charges,salary of employee, trading adviser monthly fee's etc and show the income of 6 lakhs annualy to zero deliberately?

please help

Vicky, go on and show your 6 lakh income as zero.... :clap::clap:

Then sooner or later the taxman is going to converge on you... Then pay him 6 lakhs for hiding your sins....

Turnover for intraday is the cumulative of profit and loss.

Refer to my earlier posts and you would find the answers.

good thread.

I think it is better not to file income tax instead of showing such expenses. It is a sure shot invitation for trouble. If you don't file tax at least you can plead ignorance.