Short term capital gain tax for total income under 1.5 lakhs?

Question

My wife trades in equity and it is her only source of income. Say for the current year the Short term capital gain income is 40,000 (no other income). should she still file tax return and pay short term capital gain tax?

Answer 1

STCGs are added to her total income.

For women Total income less than Rs 1,80,000/- is not taxed.

If income of woman is less than Rs 1,80,000/- then she need not file ITR.



How did she earn the capital investment required for share trading?



Also seek clarification on clubbing of income of spouse under Chapter V.

Answer 2

No. She does not file if the income is less than income not subject to tax.



For information on your India Income Tax return http://mytaxes.in/index.php?topic=32.0.

Answer 3

Hi Dear



She does not have to pay any Tax. But she could file returns

Answer 4

you pays STCG Tax @ 15% (particular fee) on Rs 4 lakhs. examine section 111A. After section 111 of the earnings-tax Act, here sec¬tion would be inserted, with effect from the 1st day of April, 2005, specifically:— ‘111A. Tax on short-term capital valuable factors now and back.—(one million) the place the completed earnings of an assessee consists of any earnings value¬in a position under the pinnacle “Capital valuable factors”, bobbing up from the circulate of a short-term capital asset, being an fairness share in a business enterprise or a unit of an fairness oriented fund and— (a) the transaction of sale of such fairness share or unit is entered into on or after the date on which financial ruin VII of the Finance (No. 2) Act, 2004 comes into rigidity; and (b) such transaction is chargeable to securities transac¬tion tax under that financial ruin, the tax payable via the assessee on the completed earnings could be the blend of— (i) the quantity of earnings-tax calculated on such short-term capital valuable factors on the cost of 15 according to cent; and (ii) the quantity of earnings-tax payable on the stability volume of the completed earnings as though such stability volume have been the completed earnings of the assessee: on condition that interior the case of somebody or a Hindu undivided family, being a resident, the place the completed earnings as decreased via such short-term capital valuable factors is under the optimum volume which isn't chargeable to earnings-tax, then, such short-term capital valuable factors would be decreased via the quantity via which the completed earnings as so decreased falls in need of the optimum volume which isn't value¬in a position to earnings-tax and the tax on the stability of such short-term capital valuable factors would be computed on the cost of 15 according to cent. (2) the place the gross finished earnings of an assessee consists of any short-term capital valuable factors stated in sub-section (one million), the deduction under financial ruin VI-A would be allowed from the gross finished earnings as decreased via such capital valuable factors. (3) the place the completed earnings of an assessee consists of any short-term capital valuable factors stated in sub-section (one million), the rebate under section 88 would be allowed from the earnings-tax on the completed earnings as decreased via such capital valuable factors. rationalization.—For the applications of this section, the expression “fairness oriented fund” shall have the meaning assigned to it interior the reason to clause (38) of section 10.’. HMT