Abt the short term capital gains tax on sale of shares?
Arnita asks:
I am a salaried person, but do investment in shares seldom. I had sold shares which were bought through IPO,S with in one year and earned profit of 25000, so its short term capital gain of 25000, so i have deposited advance tax of 2500 @ 10%, now i want to know if this business income of 25000 will be added in my annual income which is 2,80000/-.
I am a salaried person, but do investment in shares seldom. I had sold shares which were bought through IPO,S with in one year and earned profit of 25000, so its short term capital gain of 25000, so i have deposited advance tax of 2500 @ 10%, now i want to know if this business income of 25000 will be added in my annual income which is 2,80000/-.
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U HAVE PAID RS 2500. BUT WHAT ABOUT SURCHARGE AND CESS U SHOULD HAVE PAID 2500 PLUS 10 % PLUS 2 %. if ur income is above taxable limit, u can pay only 10 % for short term capital gains separately.
Your income from the sale of shares is not a business income. It is income from Capital gains and the tax on it is 10% flat rate. The advance tax you have paid at present is more than enough. The remaining balance if any can be paid at the time of submitting the return in July 2008.
The capital gains income is separate and your salary income is separate. The tax rates are different for each of them. For knowing the gross total income, they both will be clubbed first and for payment of tax purpose, they both will be calculated separately. Do not worry for that. What you have done is correct. You need to fill Income tax return form ITR2. (Not ITR-4 which is for business).
However your company will deduct TDS on your salary. You have paid your advance tax on short term capital gains. Nothing to worry at all. What you have done is correct. Now forget about that.