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The definition of “Speculative Transaction” in Section 43(5) of Income Tax Act, 1961 has been amended by Finance Act, 2005 with effect from AY 2006-2007 to exclude transaction in derivates from the purview of speculative transaction.
Income from Derivates Transaction will be treated as Business Income and taxed at normal rates as applicable to Individual / HUF. An Individual / HUF should file Return of income in Form ITR-4 if he does derivate transaction along with any other sources of Income.
Further its pertinent to mention that an individual / HUF may be liable to Tax Audit U/s 44AB of Income Tax Act, 1961 if “Assessee carry’s on business where Total Sales / Turnover / Gross Receipts exceeds Rs.40 Lakhs. Therefore if the transaction under derivates transaction exceeds Rs.40 Lakhs then Tax Audit provisions will be applicable.
The above view is given only in respect to Individual / HUF.
From:-...
I want to transfer my stocks to my wifes account. I have been holding thos shares for more than a year now. will she be subjected to capital gain tax if sold in a month or so?
C M Naik...
The reply given by the Department is in line with my reply to Mr. Bilakhia. You will have to prove it with the help of both contract notes that 12 months have indeed been completed....
Dear friend, I don`t know the reason why u r purchasing the new flat in ur wife`s name?
But from Taxation point of view, Sample this -
1. The capital gains from the sell of old house r liable to tax in ur hand & as u r not purchasing the new house in ur name, u w`d have to pay tax on this capital gain.
2. As u r using ur own money to purchase the flat in ur wife`s name, due to clubbing provisions of Section 64 of Income Tax, any rental income from new flat `ll be fully taxable in ur hands.
Plz. think b4 u act.
Thanks
Ashal
...
hi sir i sold flat in the name of my .but i want purches oter flat in first name of my wife.what i libel to pay capital gan tax....
I and my son has booked a new flat .He is first owner and I am joint holder .Since I have my first house the bank is treating this new house as second house though my son has no house of his own and he is goinging to give EMI as I am retired .DUE to this the bank will charge 0.25% more than usal rate of intrest .Can any tax guru suggest the remedial measure for the same...
hi sir i sold flat in the name of my .but i want purches oter flat in first name of my wife.what i libel to pay capital gan tax....
i had opened a mf a/c with franklin india bluechip ( growth ) in 2004 , and plan to hold it till 2018. i am investing thru sip mode. will the capital gains on redemption be tax free, ?? please advise ( jrichie777 )...
I have just SOLD my only apartment after enjoying it for 4 years. How much time do I have to buy another apartment before long term capital gains tax kicks in? Do I need to pay any advance tax right now, if I plan to buy a house with the money within 12 months? Staying in rented apartment now - Thanks...
LEAVE ENCASHMENT BEFORE RETIREMENT-TAXTREATMENT AND EXEMPTION ADMISABLE AGAINST THIS WITH LIMITS
Posted by :
Guest
What is tax treat of leave encashment amount received before retiremnent/termination/resigning from job? Is there any exemption limit for such receipt?If yes ,how much.
What is taxability status of receipt against encashment of leave on resignation from service and exemption limit,if any.
N.P.S...
Dear Bharesh,
I agree with what dear Ashal has pointed out and you will have to write to the bank and demand to rectify this anomaly. Banks and also MF registrars are known to make mistakes and then to cover up their mistakes, they will come up with some excuse or other.
Regards,
Wadia...
Mr. Bilakhia,
You would be in possession of both the contract notes for purchase and sale. Please make a comparison of the time given on the Contract Notes and see whether 12 months period has been technically completed. i.e. If bought at 10.30 hrs. of 9.10.2008 and sold at 10.31 hrs. of 9.10.2009, then, you can present your case that one year has been completed....
Ashal,
If I extend your argument further, the shares could not have been purchased before the market opens on 9th Oct 2008. That makes it 09.55 hrs. So, one year would be completed only at 09.55 hrs. on 9.10.2009. In effect, the purchase could have been effected anywhere between 09.55 and 15.30 hrs. on 9.10.2008.
Therefore, another view could be that more than 12 months means at least one day beyond 12 months.
Please have a fresh look. I am also having the matter referred to someone knowledgeable in the Income Tax Department....
Dear Subasu/Bilakhia, I`m not at all agree with the view taken by ur Bank. Sample this -
Purchase date - 9 oct 2008
12 months completes on - 8 oct 2009 (by the midnight of 8th oct 2009 i.e. 12AM for 9 oct 2009)
since the holding periods exceeds the 12 months period (no matter the period is few days or few Hrs.), in my opinion ut Gains r LTCG & as the STT was paid, u r eligible for Tax free LTCG.
Bank is not right to ask for completion of 1 more day to be eligible for tax free LTCG.
Thanks
Ashal...
Dear Mr. Subasu, in my case I had purchased shares on 9.10.2008 and hence, 12 months got completed on 8.10.2009. As I sold shares on 9.10.2009 I have sold shares after a period of 12 months(howsoever small the excess period may be). I shall appreciate further opinions.Regards - Haresh Bilakhia...
