I have questions about Capital Gains tax…
1) I have suffered some losses in Futures and Options , can I submit that losses with my IT return (I am a salaried class person with Permanent job) ,can I set off my salary with these losses. I have already paid the taxes through TDS. Do I need to club the loss with salary..
2) I have some gains in Stocks,which are taxed at 10%, should I show them into IT return
3) Mutual funds are reinvested and then how do I calculate the Taxes in case of Reinvestment of dividend… ak_131@yahoo.com
Salary can not be adjusted with losses on futures and options.
The future and options are now classified as business activity , therefore the gains or losses in derivative trading is business loss or gain. In your case , you have incurred business loss. I presume you have got short term capital gains taxed @10%.Loss incurred on future and option can be set off with capital gains. So , if that be the case, adjust the business loss on future and option with the capital gains.
If dividend received is reinvested , you have nothing to show since the dividend is tax free. But , if the redemption amount of fund units are reinvested , what you are doing is selling which will come under capital gains. In case, it is long term , gain is tax exempt , but if it is short term i.e units are sold within one year of purchase , you are liable to capital gains tax.
