Day 01 :
Income Tax, Stock Markets& Salaried Employees
As you are well aware we need to pay taxes on income we earn beyond the basic exemption limit we need to pay income tax. Many of us are salaried employees and we receive our salary after our employer deducts the Tax.
If you are a stock market investor/ trader you need to be aware that any profit/loss arising from the activity also has to form part of your Return of Income.
Profit/Loss from the Share Market can be of two types
a) If you are Investor – Income will be treated as Capital Gains.
b) If you are a Trader- Income will be treated as Business Income.
Any Profit/Loss arising from the Stock Market Activity has to be reported at the time of Filing of Income Tax Return. On Profit, we will be paying taxes immediately and if in case of Loss the same can be carry forward and set off against future profits for next 8 years. In order to carry forward and set off the Losses Returns have to be filed with in Due Date i.e on or before 31st July every year.
How and what Capital Gains & Business Income is calculated…..
Stay Tuned to next post from our End.
Income Tax, Stock Markets& Salaried Employees
As you are well aware we need to pay taxes on income we earn beyond the basic exemption limit we need to pay income tax. Many of us are salaried employees and we receive our salary after our employer deducts the Tax.
If you are a stock market investor/ trader you need to be aware that any profit/loss arising from the activity also has to form part of your Return of Income.
Profit/Loss from the Share Market can be of two types
a) If you are Investor – Income will be treated as Capital Gains.
b) If you are a Trader- Income will be treated as Business Income.
Any Profit/Loss arising from the Stock Market Activity has to be reported at the time of Filing of Income Tax Return. On Profit, we will be paying taxes immediately and if in case of Loss the same can be carry forward and set off against future profits for next 8 years. In order to carry forward and set off the Losses Returns have to be filed with in Due Date i.e on or before 31st July every year.
How and what Capital Gains & Business Income is calculated…..
Stay Tuned to next post from our End.