I am holding ICICI Direct Account and have some Sort Term Capital Gain . How to calculate and pay Income tax ?
A question similer to your question is given below. "What is the Incme-tax rate for short-term gain in shares ? I fall in the 30% category of IT. I made some profit in selling shares. Ipurchased the share and sold it within 100 days. I did it through Karvy. My advocate says I will be charged 10% flat as STT has been paid. But IT authrities have charged me 30% as per my income range. They have avised me to file appeal in case I am not satisfied. Which is the correct method of calculation?. " For the above question my answer was given below and it has been selected as best answer by the asker. "They cannot charge you 30% when your shares are STT paid. It is only 10% flat. It comes U/s 111A. Even I have filed the returns for F.Y 2005-06 with the same income and paid only 10% flat. (5 assessments for my family with same income u/s 111A.) For your information I am giving you a web link. Also google your question - income tax 111A short term capital gains - You will find number of answers." http://sify.com/finance/tax/fullstory.ph... There was another answer by ACKATARIA for the same question which is very impartant to note and which I feel is a better answer than my best answer. Mr Ackataria answer is given below for your reference. "Generally the the profit on shares (short term) i.e. held for less than 1 year are charged at flat rate of 10%, provided the the security transaction tax is paid. The STT can be verified from the share sale bill of your broker. This is covered under Capital Gain Tax It may also be noted that recently the CBDT has issued a circular which states that such gain would be treated as business income and chargeable at normal rates. However it would be only possible when there are many number of transactions and object is of making money and not investment." This answer applies for you also. You may be thinking that your gains are short term gains. As per the above answer your STT gains may be treated as business gains ????? Any way I advise you to contact a C.A and take his advise.