How To Pay Tax On The Earning Of Stocks??

Can Any Body Tell Me How We Can File Tax On The Earnings Of Share Market.
As Im Doing It Full Time And No Other Source Of Income, And I Have To Pay Tax Also? So How Can I Do It??
Thanks In Advance

Get your total profit calculated, reduce your expenses. Yours will be a trading income.
If u are doing on line, u can claim depreciation on the PC or lap top u are using. Your internet expense, phone expenses, DP charges etc are all deductible.

All stt charged to you shall be deducted a expences from the income. The tax slab shall be as that of an individual!!!
In the year ended march 2008 , stt paid cud be deducted from the Income Tax payable!!! NOT ANY MORE this year!!!
(Copied pasted from a mail received by me from r )

First see for assessment year 2007-2008, does your income exceeds 1,10,000. Then only u are bound to file return.

For AY 2008-2009 this limit is 1,50,000 for individuals.

STCG for AY07-08 was 10 % for AY 08-09 it is hiked to 15%.
u can setoff STCG against STCL(short term capital loss).

LTCG(long term capital gain) is exempted.(only if a stock is sold after 1 year)

Any profit/loss from F&O shall be business income/loss.

thanks
we have to deduct loss from profit and then we have to pay tax on remaining profit?

and how can we claim depreciation on internet exp, pc, ??

and even if our income is less than 100000 still we shld file tax??

In my opinion, as you are trading in shares the LTCG or STCGH would not be applicable to you.
Once you show your income as share trading income on trades done on line, I feel you can deduct expenes such as for braodband, telephone etc. and also claim depreciation on your PC!!
One may not file IT returns for non taxable income but it good to file a non taxable return to maintain a coninuity of records in the department!!!

Well views of a lay man, do seek guidance from a CA, there must be a few around on the forum.
Look for a thread : Post your tax queries here, or similar titles thread and post your query a bit more detilaed there to get appropriate responce.

thnks dear

mr. RK karnani,what puzzles me, is that u say STCG(short term capital gain) shall be not apllicable!
Is mr. Chidambaram is that benevolent?
Every trader is supposed to pay STCG, which has been hiked to 15% this year.This step was taken to discourage speculation which is supposed to be a root cause for volatility in the market.

To claim depreciation u should have bills/invoices of your capital assets.
(computer,modem,ups,furnitures and fixtures,tv,printers etc).

Apart from that u can deduct dth/cable charges,phone/broadband charges,electricity expenses,rent of the premise,salary of the employee(if any).
Depreciation is 10% per year for most of the items per year.next year onwards u have deduct depreciation from depreciated value only, not original price.

U got me wrong, Its nothing to do with benevolenvce of the FM, in fact u end up paying more tax, at full rate applicable, with the benefit of STCG denied to you!!!!!.
I enquired and got it confirmed that if you are regularly trading in shares, your shares are treated as 'stock in trade' and are subject to same treatment as that of any other trader. All extra u get is the benefit of STT.
Trust the matter is more clear now!!!

yes mr. karnani ! i too confirmed. u can show stocks in trade.And all the depreciation,expense deduction is available only in this case.
what is more interesting is one can have multiple books ie he can be trader, short term investor and long term investor ,provided he maintaines all the 3 books separately.
The important advantage is that a trader can use LIFO(last in first out),FIFO(First in First OUT) methods to do trading while investor can use only FIFO.