Hey @GoGuide_Map,
In case of equity stares, STCG are taxed at a rate of 15%. Moreover, a 4% health and education cess is applicable on the tax liability.
If the income exceeds ₹50L, a 10% surcharge is also applicable. The surcharge rates are different for different income levels.
| Income level | Surcharge Rate |
|---|---|
| Less than Rs 50 lakhs | Nil |
| More than Rs 50 lakhs ≤ Rs 1 Crore | 10% |
| More than Rs 1 Crore ≤ Rs 2 Crore | 15% |
| More than Rs 2 Crore ≤ Rs 5 Crore | 25% |
| More than Rs 5 Crore | 37% |
Hope this helps
Direct tax has always been cut but when and how to pay indirect tax and is there any bank account of the government in which I have to transfer the tax money?
Hey @GoGuide_Map,
On the capital gains from equity shares, the taxes you pay are considered direct taxes only. The payment of taxes can be made on the Income Tax Portal. Here’s a guide:
can we settle the financing cost of the BHNI application for IPOs with STCG?
Hey @gourav_dudani,
No, in the case of short-term capital gains, you will not be able to claim the same as an expense.
Hope this helps!
I am Babli Hansda Basari. I am pro subscriber of Quicko. As part of our financial arrangement, my husband provides me with a monthly allowance to cover our household expenses. However, I have been prudent with our finances and have managed to save a portion of this money. I have taken the initiative to invest these savings in the stock market with the aim of generating additional income for our family.
Now, I am faced with the
task of accurately reporting this additional income on my tax return. As the money used for investment originates from the allowance provided by my husband, I want to ensure that I fulfill my tax obligations correctly while reflecting the true nature of the income.
Could you please advise me on the appropriate steps to take to include this investment income in my tax return? I am particularly interested in understanding how to categorize it and any documentation I may need to provide to support my declaration.
Hi @Kalyan_Hansda,
Thank you for using Quicko.
You can show the amount received from your husband as ‘exempt income’ while filing the ITR.
Moreover, the investment needs to be reported when you sell the stocks and book profits/losses on them.
My mother is a home maker,. If i am transferring part of my salary to my mother’s account and investing in stock market. does she need to pay any Tax?
Hey @NaveenPrasanth,
There will be no tax liability when you transfer the salary amount and your mother invests the same in stocks.
The tax liability will arise only when she sells the stocks. In that case, tax will be applicable based on whether the gains are short-term or long-term.
Hope this clarifies!
Hello,
Section 111A/112A for short/long term capital gain for listed equity shares apply, when STT is paid. But if any one leg of the transaction (buy/sell) is done via off-market transaction and STT is not paid, while the other leg (sell/buy) is done on exchange and STT is paid, what tax provisions will apply for short term and long term capital gain?
Thanks,
Deepak
Hey @deepakm007,
The applicability of section 111A depends on whether STT was paid during the sell transaction. Hence, even if the securities were bought in an off-market transaction, if they were sold on the exchanges, and STT was paid, 111A will be applicable.
In case of section 112A which is for LTCG, STT needs to be paid during both the transactions, buy as well as sell transaction.
Hope this clarifies!
Thanks for response.
Is there an option to the tax payer in this case (STT paid in sell transaction) to use section 111A/112A provision or not? The reason is that for a taxpayer falling in 5% bracket, it would be beneficial not to use 111A provision.
Hey @deepakm007,
In case of listed equity shares and mutual funds, LTCG are taxed at 10% with an exemption up to ₹1 lakh (112A). And, STCG is taxed at flat 15% as per section 111A. Hence, you do not have the option to pay as per the slab rate.
I’ve also updated my previous response and clarified the applicability of sections 111A and 112A.
Hope this helps!
Hi
I have an LTCG of 101731 with regard to equity for this FY. Is the 10% taxation on this is applicable on the entire amount or on 1731. My understanding is that the first 100000 on LTCG is tax free. Can you please clarify this?
Thanks
Hey @Girimon_Vasudevan,
Yes, there is a ₹1 lakh exemption available on LTCG from listed equity shares. The gains in excess of ₹1 lakh are taxable, which in your case are ₹1731.
Hope this helps!
Hi surbhi,
Can’t I show my STCG as business income as I trade frequently. There is an option of slab rate under STCG income head other than 15% and 30% in the quicko app integrated with zerodha. Why is the option of slab rate shown there. Please clarify.
Thanks,
Sajad
Hey @sajad_saleem,
Reporting of trading income is based on the trader’s intent. If you engage in frequent buying and selling of stocks, you can report the same as your business.
Moreover, the tax rates for various capital assets differ based on different asset classes and short-term gains on some of those are taxed as per the slab rate. Here’s a table that will help clarify it further.
Hope this helps!
Gains from stocks and mutual funds are taxed based on the holding period and type of investment. Short-term gains, from holdings less than a year, are taxed at regular income tax rates. Long-term gains, held for over a year, have lower tax rates. For equity investments, long-term gains exceeding ₹1 lakh are taxed at 10%. Debt investment gains are taxed at 20% with indexation benefit for long-term gains and at regular rates for short-term gains. Dividend income is subject to different tax treatment.
A PUBLIC CHARITABLE TRUST REDEEMED MUTUAL FUND UNITS IN MARCH 2024 ACQUIRED IN 1990’S (DATE NOT AVAILABLE) AND 2003 IS LONG TERM CAPITAL TAX WILL BE APPLICABLE The entire PROCEEDS HAS BEEN INVESTED IN FIXED DEPOSIT FOR 1 YEAR.please invorm
Yes, LTCG will be applicable depending upon the type of mutual funds whether equity or debt. Irrespective you invested in fixed deposit, LTCG will be applicable and you have to pay tax on the same.
Thank you.