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9StockPortfolio
Senior Member
Joined: 10/Sep/2008
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Posts: 479
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   Posted: 22/Jul/2010 at 2:00pm |
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salary income & capital gain can not be clubbed together.
even if you earn below 160k, you will have to pay 15% tax on capital gain.
Please check with CA/Tax consultants.
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student_55
Newbie
Joined: 20/Jul/2010
Location: India
Online Status: Offline
Posts: 9
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Posted: 22/Jul/2010 at 10:02am |
Originally posted by 9StockPortfolio
salary income & capital gain can not be clubbed together.
even if you earn below 160k, you will have to pay 15% tax on capital gain.
Please check with CA/Tax consultants.
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Pardon me for having questioned your knowledge but are you sure about this? I asked the same thing on CA Forum, see the replies that I got. http://www.caclubindia.com/forum/income-tax-salary-income-and-short-term-capital-gains-94348.asp I could hire CA/Tax Consultant but at this point of time, I think they would be a costly affair and I cannot afford one being a student. Hence wandering around in the forums to get answer to my query and then file return on my own or take help of some Tax Preparer who would charge a few hundred Rupees.
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9StockPortfolio
Senior Member
Joined: 10/Sep/2008
Online Status: Offline
Posts: 479
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Posted: 22/Jul/2010 at 10:27am |
Originally posted by student_55
Originally posted by 9StockPortfolio
salary income & capital gain can not be clubbed together.
even if you earn below 160k, you will have to pay 15% tax on capital gain.
Please check with CA/Tax consultants.
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Pardon me for having questioned your knowledge but are you sure about this?
I asked the same thing on CA Forum, see the replies that I got.
http://www.caclubindia.com/forum/income-tax-salary-income-and-short-term-capital-gains-94348.asp
I could hire CA/Tax Consultant but at this point of time, I think they would be a costly affair and I cannot afford one being a student. Hence wandering around in the forums to get answer to my query and then file return on my own or take help of some Tax Preparer who would charge a few hundred Rupees.
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Do you mean that in case of loss i can club that too with my salary income hence bring down my tax bracket? I am filing returns over 5 years, and i am showing loss separately on my IT returns to be carry forwarded for 5 years. Capital Tax gain can only clubbed together with short term loss brought forward if any from previous year. otherwise it has to be taxed separately @15% despite you fall in 10% or 30% tax bracket.
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student_55
Newbie
Joined: 20/Jul/2010
Location: India
Online Status: Offline
Posts: 9
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Posted: 22/Jul/2010 at 11:02am |
Originally posted by 9StockPortfolio
Originally posted by student_55
Originally posted by 9StockPortfolio
salary income & capital gain can not be clubbed together.
even if you earn below 160k, you will have to pay 15% tax on capital gain.
Please check with CA/Tax consultants.
|
Pardon me for having questioned your knowledge but are you sure about this?
I asked the same thing on CA Forum, see the replies that I got.
http://www.caclubindia.com/forum/income-tax-salary-income-and-short-term-capital-gains-94348.asp
I could hire CA/Tax Consultant but at this point of time, I think they would be a costly affair and I cannot afford one being a student. Hence wandering around in the forums to get answer to my query and then file return on my own or take help of some Tax Preparer who would charge a few hundred Rupees.
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Do you mean that in case of loss i can club that too with my salary income hence bring down my tax bracket?
I am filing returns over 5 years, and i am showing loss separately on my IT returns to be carry forwarded for 5 years. Capital Tax gain can only clubbed together with short term loss brought forward if any from previous year. otherwise it has to be taxed separately @15% despite you fall in 10% or 30% tax bracket.
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Thanks. I guess things are not as easy as I thought. 
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anthro
Senior Member
Joined: 12/Oct/2007
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Posts: 166
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Posted: 23/Jul/2010 at 12:51pm |
Issue is clubbing of salary and capital gains or any other income to see if one's total income is below the exemption limit or not .So in student55'c case his total income (salary + short term capital gains ) is below Rs.160000 so he need not pay tax or file returns .
But like you rightly said if he had a net short term capital loss he can not net it off against salary income .
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9StockPortfolio
Senior Member
Joined: 10/Sep/2008
Online Status: Offline
Posts: 479
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Posted: 23/Jul/2010 at 12:55pm |
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Dear sir, neither profit nor loss can be clubbed together with Salary income.
In ITR there is separate provision for mentioning Capital gains/Loss for last 5 years. and tax liability if any. Salary & Short term capital gain are two different things treated separately with separate tax rates.
Next year onwards they have proposed to consider all income as single income and tax on it.
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student_55
Newbie
Joined: 20/Jul/2010
Location: India
Online Status: Offline
Posts: 9
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Posted: 23/Jul/2010 at 1:14pm |
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Thanks to both of you for posting.
I just called up a TRP agent whose number I took from incometaxindia.gov.in
He told me that I need not pay any tax. I can get my return filed from him for a few hundred Rupees. However, I am out of city at the moment and till then will like to know the Section/Clause which mentions clearly whether or not any tax is payable in this case.
A person 'wants' to pair fair tax, but doesnt know whether or not he is liable to pay any, what an irony. Long Live India. :D
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9StockPortfolio
Senior Member
Joined: 10/Sep/2008
Online Status: Offline
Posts: 479
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Posted: 23/Jul/2010 at 1:59pm |
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I too file return from TRP.
this might help
http://money.outlookindia.com/article.aspx?86718
Edited by 9StockPortfolio - 23/Jul/2010 at 2:01pm
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