Sometimes, Edu Cess is combined with Service Tax. Just check....

Hi all.

I received money in the name of 13th dividend from holding shares of ICICI through ECS. Nowhere, i have seen/heard news about dividend from ICICI. It was a pleasant surprise to me. Did anybody get like me?...

Dear Shri Ashal,

Once again, I convey my sincere thanks to you....

Dear Shri Ashal,

I request you to help me in calculating my STCL in the following transaction.

Buying details:

Gross Total is Rs.9933.39/-
Break up:
Share Price: Rs.9876.90/-
Brokerage: Rs.39.60/-
Service Tax: Rs.4.75/-
Edu Cess: Rs.0.14/-
STT: Rs.12/-
TotalCharges Rs.56.49/-

Selling Details:

Gross Total is: Rs.6692.65. (This is what I received when I sold my shares)

Breakup:

Share Price: Rs.6732/-
Brokerage: Rs.27.06/-
Service Tax: Rs.3.25/-
Edu Cess: Rs.0.10/-
STT: Rs.8/-
Service Tax
on Tran Rs.0.03/-
Cash Turn
Chgs Rs.0.24/-
Stamp Rs.0.67/-
TotalCharges Rs.39.35/-

What is my short term capital loss?

thank u.
...

I am thankful to Shri Ashal & Shri Subasu for clarifying my doubts on AIR.
...

Dear Shri Ashal,

Thanx for the prompt & elaborate reply.

From ur reply, I understand that AIR is to be filed by institutions not by individuals.

Regarding reporting of share transactions, a little bit of clarification is needed. U wrote that it is "single transaction" which should be taken into account. But in the instructions of ITR, the word " a company" is there.

This is the actual wording under code 005. "Payment made by you of an amount of one lakh rupees or more for acquiring shares issued by a company"

This has led me to confusion. Pl. clarify on the following scenarios.

Scenario 1)Say, I bought shares worth Rs.1,20,000/-of a company in a single transaction in a financial yr. In this case it is clear that i have to show in AIR schedule.

Scenario 2)Say, I bought shares of Rs. 1,20,000/- of a single company in a financial yr in 2 transactions on different dates in the same financial yr. In such case, should I report it too in AIR Schedule?

Scenario 3)Say, I bought shares of 3 companies the total value of which is 2,40,000 but Rs.70,000/-only in each company. In such case, should I report it too in AIR Schedule?

It is evident that my doubt is related to "single transaction" or "single company" in applying more than 1 lakh criterion for share transaction.

thanx
...

Dear Shri Ashalanshu,

My query is on AIR (Annual Information Report) in general and Code 005 in particular.

There are 8 no. of codes pertaining to various types of transactions which result in acquiring different sorts of assets. If we fulfil any or all of the conditions for the above codes, do we have to file AIR with IT? If so, what is the form for AIR & where it is available? How it should be filled up? Where & when the AIR form should be submitted? What proof of documents should be submitted? Are there any particular dates before which AIR needs to be submitted?

On the contrary, let us assume that I didn't report through AIR. Then, can I show in the AIR Schedule of relevant IT Returns form?

The other query is related to Code 005 i.e. 1 lakh or more invested in shares of a company. I am a salaried employee. If I invest, say, 1.5 lakh in 6 different companies, should I report it through AIR? Or do I have to report & show in my filing of returns only if my share investments in ONE company exceeds 1 lakh regardless of total investments in different companies.

Pl. add any other info related to AIR too.

thanx.

...

Hi All, I checked my acc after reading this post and I have also got the divident credited to my acc on 28th July. Could anyone tell me the divident@share and the record date since I purchased more ICICI shares recently. Thanks Sumit ...

brilliant question, briliant answers... Subasu, ashal, ranjan... gosh what noble souls... I dint know something like AIR existed... so all loop holes have been plugged then? With such transparency even kubera's realm could be probed. LOL...

Dear APshetty, Barring STT all other expenses like brok., service tax etc. \\`ll be available for deduction while calculating STCL. so here is ur STCL calc. A. Price of purchase = 9876.9 B. Expenses for purchase = 39.60+4.75+.14 = 44.49 C. Net Cost of Acquisition = A+B = 9921.39 D. Price of sale = 6732 E. Expenses for sale = 27.06+3.25+.1+.03+0.24+0.67 = 31.35 F. Net Sale cost = D-E = 6700.65 G. Short Term Capital Loss = C-F = -3220.74 Rs. thanks Ashal ...

Dear apshetty, Now ur message is on display so here comes the answer. For scenario 1 it is mandatory to report under AIR sub code 005. For scenario 2 Reporting under AIR is not mandatory but there is no harm to report it under AIR. For scenario 3, Reporting under AIR is not at all required as u r not transacting more than the limit of 1L in a single co. Thanks Ashal...

Dear APshetty, ur reply message is not on display, plz. repost it. thanks Ashal...

Dear apshetty, Schedule AIR in ITR forms is to report for transactions done by Tax payer for the relevent assessment year (2008-2009 in this case). Now first understand what is AIR? AIR - Annual information return r filed to Income Tax deptt. by different Institutions like Banks (for credit card & cash transactions), Property registrar, Car dealer, Share brokers, MFs etc. Under AIR these institutions r bound to file reports of transactions which r mandatory as per the individual condition like for Credit card bill of more than 2L rs. in FY, New car purchased above 2L rs. (infact as of now all new car purchases r reported due to price point which is more than the threshold limit of 2L), MF investment of more than 2L rs. in a FY, single transaction of shares valued more than 1L Rs. These details r sent to Income tax deptt. with the PAN of the persons. Now the IT deptt. cross check this info with the income tax return of the person, if the data matches or justifies itself the transactions, no need to worry, but if there is any discrepency in what the AIR is telling & what the IT return of person is telling, the scrutiny 'll take place & the person in question 'll have to justify the same. If there is found that Tax has been evaded, u know what IT people 'll do? Now in case of MFs or share transactions of an ordinary salaried person like u, If there is any single transaction of more than 1L Rs. value (either buy or sale), ur Share broker is bound to report it under AIR & u under code 005 of schedule AIR. Like wise if total Bills of credit cards in a FY is more than 2L rs. ur credit card issuer bank 'll report the same in AIR & u under code 002 in schedule AIR. Please read the instructions for filling the form ITR 2. In case of credit card the world is used aggregate purchase of 2L rs. where in case of MFs 2L Rs. & share transactions 1L rs, it is the word amount (which leads to understand that is for a single transaction of such amount) I hope the above info 'll clear ur doubts, plz. feel free to ask if u have any more prob. Thanks Ashal ...