Need clarificaiton on Capital gain tax in trading !

aca_trader · #11 19th March 2006, 09:10 PM

Quote:

Originally Posted by Agilent

Ashish

Its 100 % I think , not 90 %

Let us know
Rgds
AGILENT

Agilent,

It's 100% only. Still wondering how I did write 90%. Seems like I was sleeping.Will correct it.

Thanks for pointing out.

Best Regards,

lvgandhi · #12 20th March 2006, 01:36 AM

I need three clarifications.
1) If total taxable income is less than 1 lac, is it necessary to pay STCG tax?
2) If advance tax is paid 100% by march what did you mean "rest can be paid before filing returns"
3)What is Rs5000/= is it tax liability or STCG?

aca_trader · #13 20th March 2006, 02:09 AM

Quote:

Originally Posted by lvgandhi

I need three clarifications.
1) If total taxable income is less than 1 lac, is it necessary to pay STCG tax?
2) If advance tax is paid 100% by march what did you mean "rest can be paid before filing returns"
3)What is Rs5000/= is it tax liability or STCG?

Well,
1. If taxable income after including STCG is lower than Rs. 1 lac, no need to pay any STCG.
2. Sorry, That was an error. Been Corrected now.
3.Rs. 5000/- is the total tax liability.

Hope, This is clear.

Best Regards,

lvgandhi · #14 20th March 2006, 06:01 AM

thank you very much.

arun16 · #15 20th March 2006, 05:35 PM

Quote:

Originally Posted by aca_trader

Dear Arun,

I am trying to pay back in the way I can for whatever I am learning over here.

About your query;
If your expected tax liability (for all the incomes during the year) for the year is more than Rs. 5000/-, then you will need to pay advance tax as per the following schedule:

By 15th September -- 30%
By 15th December -- 60%
By 15th March -- 100%

If the tax liability is less than Rs. 5K, one can pay it by 31st July of the next financial year. Income tax can be paid in any branch of the scheduled banks.

You will need to file Income Tax Return at which time only the computation of income, etc. will need to be submitted. There is no need to submission of proof at the time of tax payment.

Best Regards,
--Ashish

Dear Ashish ,
Thanks for ur immediate reply

Thanks to other friends for discussing more on this subject.

learning so many new things here

interesting .....

govindam · #16 1st July 2006, 01:15 PM

Dear All,
I have some contradicting points learnt from a CA recently.I am about to pay my STCG tax and i need clarification as to which is correct.
1) Rs.5000 is limit for STCG tax only and not tax liability.I double checked this with him.My tax is 4000 for this fiscal and i need to pay it using self-assessment.
2) My company finance manager sais that 90% of tax is to be paid before 31st march and rest before 31st july.

Please clarify
Govindam

pkjha30 · #17 1st July 2006, 02:33 PM

Quote:

Originally Posted by govindam

Dear All,
I have some contradicting points learnt from a CA recently.I am about to pay my STCG tax and i need clarification as to which is correct.
1) Rs.5000 is limit for STCG tax only and not tax liability.I double checked this with him.My tax is 4000 for this fiscal and i need to pay it using self-assessment.
2) My company finance manager sais that 90% of tax is to be paid before 31st march and rest before 31st july.

Please clarify
Govindam

Hi

I don't know that if you can pay taxes beyond the income year without penalty and interest.

Pay taxes by 31st march only. Retuns are filed by 31st July.

Advance tax is paid from september of the income year. i.e. before 31st march and not after that.Advance tax is payable if your tax libality exceeds some limits

Quote:

September 15, December 15 and March 15:

advance tax payment schedule

If your salary is your only source of income, chances are your employer is already deducting advance tax at source. But if you have income from other sources, you may need to pay advance tax in instalments. For instance, if your total tax liability for the year on income from salary, house property, capital gains or other sources is Rs 10,000, you should pay Rs 3,000 in advance tax by September 15, an additional Rs 3,000 by December 15, and the balance Rs 4,000 by March 15. While computing your advance tax liability, you must factor in the tax deducted at source by your employer (and anyone else who made payments to you during the year).

visit this for more info.

http://in.taxes.*****.com/taxcalendar.html

Pankaj

aca_trader · #18 1st July 2006, 07:50 PM

Quote:

Originally Posted by govindam

Dear All,
I have some contradicting points learnt from a CA recently.I am about to pay my STCG tax and i need clarification as to which is correct.
1) Rs.5000 is limit for STCG tax only and not tax liability.I double checked this with him.My tax is 4000 for this fiscal and i need to pay it using self-assessment.
2) My company finance manager sais that 90% of tax is to be paid before 31st march and rest before 31st july.

Please clarify
Govindam

1. Your attention is invited to Section 208 of the Income Tax Act which imposes conditions on payment of Advance tax and states, "Advance tax shall be payable during a financial year in every case where the amount of such tax payable by the assessee during that year, as computed in accordance with the provisions of this Chapter, is five thousand rupees or more."

So the limit of Rs. 5,000 applies to the total tax liability and not only on STCG. If the tax payable by you is Rs. 4,000 only, you need not pay any Advance Tax.

2. Please refer to Section 211 of the Income Tax Act, 1961 which requires payment of 100% of the advance tax computed. Actually the 90% figure quoted by you is due to a partial reading of the Income Tax Act. A lot of persons have been its victim including yours truly at some or other point of time.

As per section 234B, interest is payable only if the Advance Tax paid is less than 90% of the Tax Liability. A plain reading fails to take into account the effect of Section 234C which requires interest payment in case the advance tax deposited is less than 100%. Hence, interest payment can be avoided in full only when section 234B is read with 234C.

However, if one wants to pay interest u/s. 234C he can pay 90% and avoid interest payment u/s. 234B.

Best Regards,
--Ashish

swagat86 · #19 9th July 2006, 01:00 AM

hi frnds even i hav a query, say my CG tax is Rs5000. What are the methods available to save tax. Is it purchasing capiatal gains bonds? any others. like salary incomes can recive deductions and benefits from NSC insurance policies, mutual funds etc? how is it possible to save tax here. assuming i dont have any other income.

Spiderman · #20 9th July 2006, 10:44 AM

hi,
I wouldlike to know how do we calculate shortterm capitalgains tax.should
stcgt be calculated inclusive of brokrage commissions on buy/sell side or on
the profit after deducting commissions and stt.

Similar Threads for: Need clarificaiton on Capital gain tax in trading !
Thread	Thread Starter	Forum	Replies	Last Post
Capital gain tax and tax on income from trading	mohanlate	Taxation Matters	5	11th March 2008 03:08 AM
Need some objective rules to stop-gain	Wai_Wai	Technical Analysis	10	12th March 2006 09:32 AM
Reliance Capital	tusharbhayani	Derivatives	1	13th November 2005 05:21 PM