Dear Sir, I am a homemaker since 5 years. I was working before in IT industry. I have now become a short term investor in the stock market since Jan 2017. I have 2 questions. 1) Can my short term capital gains be considered as my income as I have only F.D income which is about 50K, if STCG is less than 2.5L. OR should it be treated as STCG only and I need to pay 15% tax though my income is 50K(FD interest). 2) If I am not a intra day trader but a short term investor who sell stocks with in few days/few weeks, if the traded amount exceeds 1cr in a year, do I need to get it audited ?
Hiii
Nature of Transaction in share market depends on your intention if you invest and sale then its covered under capital gain , if you purchase as stock and sale then its business
after deciding nature taxation compliance arise,
in STCG Income tax applicable 15% (on STT paid Transactions)
in business ( delivery trading considered as turnover) and intraday Trading net effect considered as income thus you have to check prescribed limit for Tax Audit Purpose
1. Yes, you will get the benefit of 2,50,000 tax exemption
2. If your trading amount exceeds 2 crores then you need to get accounts audited from A.Y 17-18
Hello,
1. Yes, your STCG will be clubbed in your basic exemption limit and only the amount above the basic exemption limit will be taxed as Capital Gains.
2. No need to get it audited unless you are a trader.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Dear Sir,
1. Yes, STCG wil be considered as your income.
2. No, if you are a short term investor you dont need to get your account audited. You can treat it as STCG but you have to continue to treat it as STCG. You cant change your stand in upcoming years.
Please feel free to call/ revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
Hi,
Your STCG and your FD income will be added together. The amount above the basic exemption limit will be taxed as capital gains. So long as you do not indulge in intra-day, you need not get your books of accounts audited.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LLB
