Tax on share trading

[Asked by Guest]

Hi,

I did some share trading with money that my husband transferred to my a/c.

There are some short term profits and some are long term.

How taxation is considered in this case where I used money from my husband?

Regards,

Padma

[Ganeshan Kalyani]

The income should shall be taxable in either of the spouse .

Thanks! Ganeshan,

I have one more doubt based on your reply.

you mentioned "either of the spouse", in this case my husband is in 30% slab. But I might fall under less than 2.5 lac slab ( means no tax). In this case who is considered for paying tax on the income of profit earned on share trading.

Regards,

Padma

[Ganeshan Kalyani]

You may consider it in your ITR as income is earned by you out of share trading.

AI Summary

Taxation of share trading: profits are taxable in the name of the person who executed the trades, not the fund-provider.
Advisory responses indicated that share trading profits are to be treated as income of the person who carried out the trading and earned the gains, irrespective of the source of funds, and that the transferee spouse may include the trading profits in her income tax return; the distinction between short term and long term gains was noted but no rate or technical adjustments were addressed.