option tax and capital gain

#1
I have few question ....

Q1
suppose u make 4 lakhs profit in option trading and with that money u buy reliance share in demate account and keep it for 2 yrs so do u need to pay tax still or it will be considered as Long term capital gain so no tax ?

Any profit you make by sale of shares that you have held for more than 1 year is considered as long-term capital gain and if this transaction is done through recognized stock exchanges for which the STT (Security Transaction Tax) is already paid, is exempt from Income tax under section 10 (38).
Q2
The software charges like say amibroker legal license and data charge data feed charge , high speed internet etc etc
windows 10 charge etc new laptop
are all this expenses can we claim in tax ?
If yes then it makes sense for all to subscribe to data fees right as tax will make it free :(
currently i manually do feeding to ami ..
 
Last edited:

jagankris

Well-Known Member
#3
I have few question ....

Q1
suppose u make 4 lakhs profit in option trading and with that money u buy reliance share in demate account and keep it for 2 yrs so do u need to pay tax still or it will be considered as Long term capital gain so no tax ?



Q2
The software charges like say amibroker legal license and data charge data feed charge , high speed internet etc etc
windows 10 charge etc new laptop
are all this expenses can we claim in tax ?
If yes then it makes sense for all to subscribe to data fees right as tax will make it free :(
currently i manually do feeding to ami ..
http://justtrading.in/getting-started-with-trading-tax-guide-for-traders-in-india/
http://justtrading.in/tax-benefits-implications-of-declaring-trading-as-a-business-activity/
Just make sure to open trading accounts in your family members name and trade in their accounts as well so that you could save when the profits exceed 2.5 lakhs in each account.
STT can be deducted from the profits made - that's what it means.
Also you can offset for the losses made previously with in 8 years period if declared as loss in the IT returns.(So it is important to file IT even if one makes loss in trading).
 
#4
ok thanks iw il read the links u gave ..

Just make sure to open trading accounts in your family members name and trade
won;t it be difficult to manage accounts ?
i have like 4 family members only

so that's 4 months lol what about rest 8 months lmao

and they all earn 2.5 annually only i am Road chaap trader in family :(

For some reason i think govt don;t want u to earn more then 2.5 lakhs ....
 
Last edited:

mastermind007

Well-Known Member
#5
ok thanks iw il read the links u gave ..



won;t it be difficult to manage accounts ?
i have like 4 family members only

so that's 4 months lol what about rest 8 months lmao

and they all earn 2.5 annually only i am Road chaap trader in family :(

For some reason i think govt don;t want u to earn more then 2.5 lakhs ....
10 lakhs in 4 months is good enough; Roam all over India in next 8 months and then can add travelling cost also as expenses ... :)
 

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