Income Tax on Profit from Sale of Shares

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  1. maheshn77

    maheshn77 New Member

    what if i earn 20000 (all short term) by selling shares up to 15 sept then again earn 20000 upto 15 dec... and again 20000 up to 15 march... now how should i pay tax without late 1% interest... and if there were any loss in between how to adjust it ?
     
  2. maheshn77

    maheshn77 New Member

    but my profit may increase or decrease up to 15 march so what amount should i take for calculating 30%, 60 %
     
  3. rudrabose

    rudrabose Active Member

    The Income Tax Act says that you are required to compute your estimated income for the year. Based on this estimated income - you are then required to compute your estimated tax liability for the year.

    30% of your tax liability should be paid before 15th Sept
    60% of your tax liability should be paid before 15th Dec
    100% of your tax liability should be paid before 15th March

    In case of any delay in depositing the tax as per the above schedule, the taxpayer would be required to pay Interest @ 1% per month
     
  4. maheshn77

    maheshn77 New Member

    its difficult to estimate exact income from shares.

    what if i earn 20000 (all short term) by selling shares up to 15 sept then again earn 20000 upto 15 dec... and again 20000 up to 15 march... now how should i pay tax without late 1% interest... and if there were any loss in between how to adjust it ?
     
  5. gaurav_kumar

    gaurav_kumar Well-Known Member

    In your case, maybe you can pay tax on the minimum income which you expect to earn during the year and pay tax on balance income with 1% interest.
     
    maheshn77 likes this.
  6. kasthurirangan

    kasthurirangan New Member

    The following charges are made when purchase and sale of shares. Shall I deduct the same for arriving profit on shares?
    STT
    Transaction and SEBI Turnover charges
    Stamp Duty
    Brokerage + Service Tax
    EBA / NSDL-CDSL charges
     
  7. v k kaushik

    v k kaushik New Member

     
  8. kasthurirangan

    kasthurirangan New Member

    The following charges are made when purchase and sale of shares. Shall I deduct the same for arriving profit on shares?
    STT
    Transaction and SEBI Turnover charges
    Stamp Duty
    Brokerage + Service Tax
    EBA / NSDL-CDSL charges
     
  9. kasthurirangan

    kasthurirangan New Member

    The following charges are made when purchase and sale of shares. Shall I deduct the same for arriving profit on shares?
    STT
    Transaction and SEBI Turnover charges
    Stamp Duty
    Brokerage + Service Tax
    EBA / NSDL-CDSL charges
     
  10. gaurav_kumar

    gaurav_kumar Well-Known Member

    @kasthurirangan : The STT paid wont be allowed to be claimed as an expense.

    The other payments made by you like Brokerage charges etc. are allowed to be claimed as an expense.
     
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