POSTED BY April 26, 2013 3:06 am COMMENTS (10)

ONI have questions in my mind as follow:

Suppose my mother invest in some shares and gain profit from it within 6 months. while total income from bank FD on her name and the share profit is less than 2 lakhs. so This short term capital gains included in tax bracket or not?

If income is more than 2 lakhs, so does we have to pay 15% tax on short term capital gain from share trading instantly or after whole calculation for the year?

Dear Bharat, my counter question to you. If one is in 30% tax slab, the STCG rate should be 15.45% or 30.9%?

Thanks

Ashal

Dear Mr. Ashal Jauhari,

Hi. Great to have your learned inputs. I am 58 years in age. Kindly apprise regarding 40% pension commutation. Do I do it or not. Why I ask is because:-

01. I will retire @Rs. 150000 basic in 7th pay commission.

My pension basic will be 75000. If I commute 40% of 75000 then my pension basic will be 45000.

02. Is the half yearly Dearness Allowance calculated on 75000 OR 45000.?

03. In case of say the “Family Pension” coming into effect on demise, will the family pension basic be 50% of 45000 = Rs.22500. ?

04. For “Family Pension” again is half yearly Dearness Allowance calculated on 45000 OR 22500.?

05. In the case if I do not Commute 40% of my pension basic of 75000 then will the “Family Pension” be 50% of 75000 = Rs.37500?

06. Again will the half yearly Dearness Allowance calculated on 75000 OR 375000?

07. MOST IMPORTANTLY- Does it make sense NOT to commute 40% looking at the Quantum of DIFFERENCE between the choice of revised basics thereof?

08.In light of the corpus the Government pays on Commuting 40% , which I believe is approximately 90 times, Sir, What is the “break even Period” in years?

Look forward to your learned inputs,

Aninda

Lucknow

@ashal

with due respect to your knowledge in personal finance and income tax , i am of view that one can add his STCG to his incomes under other heads and get taxed as per the slab of income , if it is favorable. i checked this fact with some CA. kindly get it checked with your sources , and clarify with any reference from income tax department.

i request other knowledgeable members members of this group including Manish Chauhan to share their views on this matter , because Ashal’s views are most respected on this forum.

Dear Bharat, the excess income is coming from STCG & hence the Rate of tax ‘ll be 15.45%. No you can not select your rate.

Thanks

Ashal

@ashal

‘Case-2

FD Interest = 125000

STCG from Eq. MFs = 125000

Combind income = 250000 but only 50000 Rs. excess income ‘ll become taxable. As the excess part is coming from Eq. MFs STCg, the tax rate ‘ll be 15.45% & not normal 10.3%.’

is it so? i am doubtful. i think , we can select it as combined with other head income ,and pay tax as per slab , or we can select it separate and pay tax as per stcg tax. please clarify.

Dear Nikhil, the tax can be paid instantly or at the end of FY. In case you opt to pay after FY closing, the section 234 related interest clauses may come into play.

Thanks

Ashal

Means we have to pay 15% tax on short term capital gains. can we pay tax instantly or after financial year?

Dear Nikhil, she need not to pay tax at all for combined income falling below 2L Rs. if she is under 60Y age & 2.5L Rs. for being Sr. Citizen. In case, her combined income goes above zero tax limit, she needs to pay tax only on the excess amount.

For example, I assume she is below 60Y age & has following cases.

Case-1

FD interest = 125000

STCG from Eq. MFs = 55000

combined income = 125000+55000 = 180000 No tax as iincome is below zero tax slab of 2L Rs.

Case-2

FD Interest = 125000

STCG from Eq. MFs = 125000

Combind income = 250000 but only 50000 Rs. excess income ‘ll become taxable. As the excess part is coming from Eq. MFs STCg, the tax rate ‘ll be 15.45% & not normal 10.3%.

Thanks

Ashal