The Capital Gains Blog

Archive for the ‘Capital Gains Rules’ Category

Question: I would like to know tax liability on various income for A.Y. 09-10?

My income scenario as follows: ( MEN)
1) Net salary income – 5,785,212 (after all deductions of allow.)
2) Interest paid on Hsg loan 125840/- & installment 69732 and rent recd from same flat rs. 75600/- (annual let out )and muncipal tax paid 6800/-
3) Capital Gain/loss: STC loss-58570/- LTC loss -16092/-
4) Saving bank interest 19216/-
investment: Medicalim Rs. 19000/- & PPF 70000/-
TDS ON SALARIES Rs. 18,42,055/-… Please guide me for Tax amount.

Answer: You will get a refund of Rs.27,200. I have prepared a ITR-2 for you in Winman’s tax software. It is 7 pages in word format. It is not passable to show the calculation.

Please give your mail address. I will sent it. My mail address is tmohanraot@yahoo.com. It is free. I am just helping you. That is all. I will send the ITR-2 to all those who are interested.

1Gross total income 57,85,318 (Incl. H. rent, home loan int., stcg, ltcg & Bank int.)
2Deductions under Chapter-VI-A1,00,000
3Total Income 56,85,320
3aCurrent Year loss (if any)3aNIL
4Net tax payable 18,14,852
5Interest payable NIL
6Total tax and interest payable18,14,852
7Taxes Paid
aAdvance Tax 7aNIL
bTDS7b18,42,055
cTCS7cNIL
dSelf Assessment Tax7dNIL
eTotal Taxes Paid (7a+7b+7c+7d)7e18,42,055
8Tax Payable (6 – 7e)8NIL

9Refund (7e – 6)27,200

Note:
1. I have treated STCG as gains from shares.
2. LTCG loss treated as loss from shares (Loss cannot be set off from any income)
3. 80C deduction Rs.69732+19000+70000 is limited to Rs.1 lakh

(AFX UK Focus) 2010-01-05 00:53 JGBs up on bargain hunting; Nikkei rise caps gains

TOKYO, Jan 5 (Reuters) – Japanese government bonds inched up on Tuesday on bargain hunting following a rise in U.S. Treasuries, though gains were limited as Tokyo stocks were on track to mark a 15-month closing high.

NITRO Track Guide: Madrid

Question: Stock market: capital gains (short-term & long-term) vs. a reverse stock split & fractions?

1jul06: bought 10 shares of XYZ stock
1jul07: bought 6 more shares of XYZ
1oct07: the stock reverse-splits 1-for 4
1 dec07: If I SELL 3 shares (of the 4 left after the split), how can I know whether the 3 are short-term or long-term when I figure capital gain? I think I know the rules for figuring the _amount_ of gain/loss but my accountant & stockbroker are clueless (as am I) as to the holding periods & all. Help!

Answer: You sold 2.5 shares for a long-term capital gain (or loss) and 0.5 shares for a short-term capital gain (or loss).

The cost of the 2.5 shares is what you paid for 10 shares on 1Jul06. The cost of the 0.5 share is 1/3 of what you paid for 6 shares on 1Jul07.

The sale price of the 2.5 shares is 5/6 of what you received for 3 shares on 1Dec07. The sale price of the 0.5 share is 1/6 of what you received for 3 shares on 1Dec07.

A look at economic developments around the globe

A look at economic developments and activity in major stock markets around the world Tuesday:

Capital Gains & Losses Reminder

Profile: Geoff Hoon

Unlikely survivor of the Blair-Brown era who left the government last year after almost a decade in the cabinet Geoff Hoon’s move today is a surprise, not least because he was Gordon Brown’s first chief whip. But the two men have never been close and this very public breakdown in their relationship will not be accompanying by lashings of private grief from either men. Hoon was one of the …

Ben Stein explaining how Obama will screw the US Economy

(AFX UK Focus) 2010-01-04 03:24 Indian rupee to track gains in Asian peers

MUMBAI, Jan 4 (Reuters) – The Indian rupee should rise on Monday in line with Asian currencies and with gains in Asian shares raising expectations of foreign capital inflows. * The partially convertible rupee ended at 46.61/62 per dollar on Friday, about 0.2 percent weaker than 46.53/54 on Thursday.It traded between 46.59-46.65 on Friday. * In 2009, foreign portfolio buying of more than $17 …

Poker After Dark Season 6 Ep.2 part 5/5 [HQ]

Question: Tax on capital gain from stock investment?

hi,
i know that for long-term capital gain, we would be taxed at 15% of the tax bracket and for Capital Loss (regardless time frame), it can be tax-deductible for up to 3000.

however, let say this year, I’ve have lost 3000 in one stock, and 3000 long term capital gain on another stock. According what I have researched, these will cancel out one another. Is this true, or these two transactions can be recorded seperately according the the rule i described above.

in another word, the gain/loss is the net of investment or each transaction is applied toward the rule.

thanks.

Answer: The 3000 loss and the 3000 gain would cancel each other out. They would be recorded separately but it’s the net total of $0 gain/loss that would show on your Schedule D. It’s your net for the year that counts. By the way, while the capital gains is taxed at a maximum 15% bracket, if you are in the 10% or 15% tax brackets the rate is 5% instead of 15%.

Place your bets: the stocks and shares that could make a tidy profit in 2010

The Guardian’s team of share tipsters racked up an impressive 80% average in 2009, and now they have picked a cross-section of companies to try to take advantage of the hoped-for slow ongoing recovery in 2010 • How our 2009 share picks performed It was never going to be a relaxing time for investors in the year following the catastrophic collapse of Lehman Brothers, and so it proved in 2009 …

Hoons could face three-month loss of car, Bob Cameron says