Income Tax Return 2021: People’s interest in the stock market has increased and a large number of people invest and trade in it. Although there should be profit on every deal, it is not necessary that there may be loss in some deals. In such a situation, it is very important to know how the loss you have suffered from investing or trading in the stock market can be set off. Can it be set off from salary income or not? Right now the returns for the financial year 2021-21 are being filed, so it is necessary to know about it while filing the return. The last date to file ITR for assessment year 2021-22 is December 31, 2021.
Tax Talk: Do those earning from shares also have to pay advance tax? Know, the complete account related to your liability
Loss carry forward facility
According to Abhishek Soni, Co-Founder and CEO, Tax2wind.in, the loss on sale of shares or mutual funds cannot be set off from salary income, but the loss from the stock market can be set off from the profit from the stock market. could. If there is no profit in that financial year or the entire loss is not being adjusted i.e. profit has decreased, then after adjusting this entire loss or loss, the remaining loss can be carried forward to the next financial years also.
Income from stock market is in three categories
- Under the income tax rules, profits or losses from transactions in the stock market have been classified into three categories – capital gain/loss, business income/loss or speculative income/loss.
- According to tax experts, according to the nature of the transaction, income from the stock market is liable to be taxed either by considering capital gains / profits or by considering profits from business and profession.
How is the tax liability made on the earnings from the share market, know the answers to all the important questions
- According to the Income Tax rules, if the transaction is an investment, then the income earned from it will be taxable at the same time as the capital gain. On the other hand, if the share market transaction is a business activity, then the income earned from it will be calculated in the same way as the tax is calculated on business and profession.
- If the share market transaction is of business nature and not investment, the loss from transactions other than intra-day can be set off from the income under all heads except salary income.
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