reg. share transaction levy and witholding tax

zenobia · 1 reg. share transaction levy and witholding tax Mon Nov 30, 2015 3:13 pm

zenobia

Manager - Equity Analytics

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the budget proposes to remove shares transaction levy at 0.3% and witholding tax at 2.5% (for the interest of deposits), both of which were final taxes(which means you didnt have to include them in your taxable income once these automatic taxes were deducted at source).

by removing them the deposit interest and share capital gains will have to be included in the taxable income calculations and will be charged at 15% for income tax.

the amount of income tax payable will be considerably increased to say the least.
(i am talking about those who earn more than 200,000rs per month.)

please prove i am wrong.

Top Trader · 2 Re: reg. share transaction levy and witholding tax Mon Nov 30, 2015 8:07 pm

Top Trader

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zenobia wrote:the budget proposes to remove shares transaction levy at 0.3% and witholding tax at 2.5% (for the interest of deposits), both of which were final taxes(which means you didnt have to include them in your taxable income once these automatic taxes were deducted at source).

by removing them the deposit interest and share capital gains will have to be included in the taxable income calculations and will be charged at 15% for income tax.

the amount of income tax payable will be considerably increased to say the least.
(i am talking about those who earn more than 200,000rs per month.)

please prove i am wrong.

By Technically you are right.

But it was confirmed that amendments will be made to the IRD, to exempt the Profit Earned from the Share Trading, since the idea behind the removal of STL was to bring down the overall transaction cost.

About the Income Tax on Interest, yes if you have income above 2.4 Mn per year you are liable to pay IT @ 15%, unless your are a Senior Citizen. I feel which is fair enough and indirectly promote the share investments.