Help regarding ITR for short term gain
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I have profit of around 50k from mainly IPO and other short term gain and my total income falls much below than level of 5 lakh but due to money rotation i may be having annual transactions for around 7-8 lakhs from my bank accounts. Just rotating money b/w friends, family and for cashback offers.
I don’t file ITR till now.
Is it mandatory to file ITR for these short term gains or can be avoided.
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Profit of 50K would be a tax of 7.5K (15% of 50K). Even if your income is below 5L, you are liable to pay tax solely on STCG. TDS from FDs/other investments can be adjusted and reclaimed on filing return.
Also, If your short term capital gains tax is more than Rs 10,000, you are liable to pay advance tax (in the quarter that the gains are realised and the tax is due.)
How to pay advance tax i don’t have any idea about that
@Sudarshan61 ok
Thanks bro!!
Yeah,
here to this date if we count Op’s STCG: 7.5k
And Income as 4 lac: 7.5k
He would get rebate of 12.5k and would need to pay 2500 tax + cess, etc. as applicable
If Income as 3.5 lac: 5k
Nil Tax (7.5k + 5k – 12.5k)
I don’t have any other income except STCG
@soccergiants
yes, only this gain
don’t have any other incme
File ITR as department can send notice asking reason for non filing of return by quoting these stock transactions even though Tax payable is Zero.
Don’t worry. Even if it is STCG, you aren’t liable to pay Income Tax if it is under 5 Lakhs. Don’t go by what other tells you. This is your income from other sources. IPOs are not speculative income also. So don’t worry and live life tension and pension free. 
If ur total income before any deductions under chp VI – A i.e. 80c(lic, ppf), 80D mediclaim etc . exceeds 2.5 lakhs, it’s mandatory to file return.
You have also rotated money atleast twice your annual income.
So I would advise you to file your return to be on safer side.
hehe,
ese ny hota
Please read above comments (including 1 by me where I explained 2 scenarios)
STCG is taxed @ 15% while your normal Income would attract 5% in tax bracket (2.5 – 5 lac) hence you might attract tax in some case
Talked to IT officer and got clarification that if you don’t have any other income source and your earning in one FY is less than 5 Lakhs you don’t need to pay any tax but have to file ITR as it is above basic exemption limit of Rs.2.5 Lakhs. It’s good to see you earn profits. I mostly end up losing money. No IPO allotted after 2012. My loss from equities stands at 41259.66 and FnO @ 49890.50. Markets goes in reverse direction whatever I do. When buy Call options it start getting down and when keep put options it never comes down. So if anyone want to drag markets down I can buy a call option although not trading since last 3 years. haha Lost out opportunity in Covid times also. Nom mutual funds investments. Money parked in FDs and Debt funds only.
Thank a lot 👍🏻🤗
ITR-2 is applicable where Short Term Capital Gain is there. Ignore money rotation, that is not part of a ITR.