short term capital gain tax + income?

Question

i just want to know about short term capital gain tax. if my income is rs.3 lakhs per annum and i earned rs.4 lakhs from commodities market so i have to give separate 15% tax on the basis of rs.4 lakhs or 4+3= rs. 7 laks income * which have tax.
or how much i have to pay tax on total basis

Answer 1

hi





Under the head capital gain the Definition of capital asset no where define the commodity as an capital asset.In that regard can the profit from commodity transaction be considered as capital gain.



When you say 'income from commodities marked' does it mean Commodity Exchange and transactions without taking delivery.



Commodity Dealing are mainly without taking delivery. So as per act when there is transaction for purchase and sale or sale and purchase which is entered without taking delivery it is speculation gain/loss. So, that way you have to show it as speculation gai/loss. If you are taking delivery than selling. in that way it will be normal business, so apply as per business income.



Therefor income of Rs.4.00 Lakhs to you will be regarded business income and taxed accordingly.



It will attract tax according to normal tax slabs in which it will fall.



Good luck.

Answer 2

if same query comes with shares e.g wipro etc in place of commodities then what should be tax on short term capital gains i.e whether on 4 lakh or combine 4=3 lakh.?

Answer 3

hiya, you will taxable at 15% (revised tax fee for STCG) for earnings in far greater than INR one hundred fifty,000. that's based on the fee variety proposals and has no longer yet been authorized. as quickly as authorized you are able to communicate over with the earnings-tax Act. section 40 5 to section fifty 4 covers the taxation of Capital effective properties

Answer 4

You will pay STCG Tax @ 15% (special rate) on Rs 4 lakhs.



Read section 111A.

After section 111 of the Income-tax Act, the following sec¬tion shall be inserted, with effect from the 1st day of April, 2005, namely:—

‘111A. Tax on short-term capital gains in certain cases.—(1) Where the total income of an assessee includes any income charge¬able under the head “Capital gains”, arising from the transfer of a short-term capital asset, being an equity share in a company or a unit of an equity oriented fund and—

(a) the transaction of sale of such equity share or unit is entered into on or after the date on which Chapter VII of the Finance (No. 2) Act, 2004 comes into force; and

(b) such transaction is chargeable to securities transac¬tion tax under that Chapter,

the tax payable by the assessee on the total income shall be the aggregate of—

(i) the amount of income-tax calculated on such short-term capital gains at the rate of 15 per cent; and

(ii) the amount of income-tax payable on the balance amount of the total income as if such balance amount were the total income of the assessee:

Provided that in the case of an individual or a Hindu undivided family, being a resident, where the total income as reduced by such short-term capital gains is below the maximum amount which is not chargeable to income-tax, then, such short-term capital gains shall be reduced by the amount by which the total income as so reduced falls short of the maximum amount which is not charge¬able to income-tax and the tax on the balance of such short-term capital gains shall be computed at the rate of 15 per cent.

(2) Where the gross total income of an assessee includes any short-term capital gains referred to in sub-section (1), the deduction under Chapter VI-A shall be allowed from the gross total income as reduced by such capital gains.

(3) Where the total income of an assessee includes any short-term capital gains referred to in sub-section (1), the rebate under section 88 shall be allowed from the income-tax on the total income as reduced by such capital gains.

Explanation.—For the purposes of this section, the expression “equity oriented fund” shall have the meaning assigned to it in the Explanation to clause (38) of section 10.’.



HMT