Income tax

sheela (Querist) 16 January 2015 This query is : Resolved
A person has following annual income from 3 sources:
a)pension(3L),
b)speculative share trading(1L)as a trader
c)short term gain in equity trading(1L) as an investor

2. Kindly advise how will income tax be charged from him

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Guest (Expert) 16 January 2015
Seems to be an academic query.

Rajendra K Goyal (Expert) 16 January 2015
Consult your tax adviser or post query in CA club.

Anirudh (Expert) 16 January 2015
Your total income is Rs. 3 lakhs + 1 lakh + 1 lakh i.e. total Rs. 5 lakhs.

Now you know the slab rate.
You also know the exemption for ladies and senior citizens.

You will also take into account any savings for which you will get exemption.

Then you can arrive at the income tax.

Assuming that you do not have any savings, but you are a senior citizen then your taxable income would be Rs. 2 lakhs (as Rs. 3 lakhs is exempted for senior citizen).

You have to pay tax on the balance Rs. 2 lakhs applying the slab rate.

sheela (Querist) 17 January 2015
Thanks a lot Anirudh Sir. What I actually want to know is whether income from pension will be charged at slab rate; income from speculative trade will be charged at special rate of 30%; and income from capital gains from equity will be charged at special rate of 15% OR the entire income of 5L supposing it to be net income will be charged at the highest rate of 30% in this case.

T. Kalaiselvan, Advocate (Expert) 19 January 2015
The income derived from the sources of trading in the stock market will suffer the taxes at source hence yo need not go behind that especially if you are a regular intra day trader. You see how you are going to manage the income tax payments if your pension income crosses the limit.

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