Stock Market Tax Guide — Full Breakdown & Transcript

[00:01] or normal, you are not doing anything else, you are not getting any income from any other source, let's say the income, if you are trading stocks only intraday and get profit up to 5 lakhs, then there is no

[00:17] trade in futures and options and get profit up to 5 lakhs, then there is no need to pay any tax, there is no need to pay. If you buy any stocks and buy any stocks and

[00:31] book profit in less than one year, up to around 330000, then there is no water to pay. If you buy stocks and hold them for more than one year, then buy stocks and hold them for more than one year, then

[00:43] you will get long-term capital gains up to 3/2 lakhs in a single year. our official income tax website and shown you all this. Here, I will explain it to you step by step. You do

[01:00] telling you. I am not showing you my own calculation in an excel sheet. On the official income tax website, you don't need to pay any tax. And particularly,

[01:18] those who are doing intraday trading in stocks, doing BTST, swing trading, positional trading and long-term investment in stocks can also pay less tax with any rules and regulations. And Talking about these, how can you also pay the losses coming to you? You can make a profit in the future by carrying

[01:33] and let's also talk about the concept of tax harvesting. With this, also talk about the concept of tax harvesting. With this, you can manage the profits that you are getting legally without paying tax to the government with simple tricks. While

[01:46] talking about this technique, what kind of tax is there on the gain coming in future and options pay less tax and the loss that comes. Let's say you have a loss of 1000. That loss is like other income coming to you like you

[02:00] sold a house and got gains from it or you have any other got gains. How to set off with them. How to minimize the tax you have to pay with the FNO loss coming here. While

[02:15] Actually, I plan to have two videos. I have done it now everything that I have talked about will be covered in this video. Another video is that if you have a requirement, how can the tax of FNO traders who earn in lakhs and even crores be drastically

[02:27] tax of FNO traders who earn in lakhs and even crores be drastically And legally, how can we reduce the tax of those who earn a lot through trading and investment by using some tricks? trading and investment by using some tricks?

[02:40] This is a little different. It is understand that when there is that big income but the income is in the even range, but the income is in the even range,

[02:53] you think you have a requirement, financially profitable. If you talk about taxes, you will benefit. I have these two videos. If you have a requirement, If we want

[03:07] to know on the response coming in the comment section. Let's friends, if you find the efforts that we and our team

[03:23] members are putting in to bring you such interesting content valuable, then be sure to like the video to encourage the efforts that we are putting in. Okay, I'm speculative income, such terminologies do not go much into your mind.

[03:36] what we you trade stocks. You trade intraday. You do not carry them for more than one day. Then, intraday. You do not carry them for more than one day. Then,

[03:49] How much is your income tax liability? If it is at the rate, you have to pay tax at that rate. According to the logic we know, if you are in the old income tax structure, you do not need to new income tax structure, you do

[04:04] So if you do not have any income, it is only through speculative income, meaning if if you do not have any income, it is only through speculative income, meaning if to 5 lakhs you do not need to pay any tax but you have to

[04:20] file income tax returns. If it comes up to 2 1/2 lakhs, you do But if it comes up to 5 lakhs and you get more than 2 1/2 lakhs, if you file income tax returns and get rebate, you will have a

[04:34] tax rebate of around 12500. If you get it, you will not have to pay any tax. Not as if it is being done through the cumulative gains means there is above 5 lakhs, then in the old income tax lab, depending on your income,

[04:49] you will have to pay tax. If you have gained 5 lakhs but you structure changes. Salary income is taken into consideration first and your income tax is taken into tax. If there are losses, then

[05:03] friends, you can file income tax returns and carry that loss for up to four years. What is the returns and carry that loss for up to four years. What is the close to 10 lakhs this year by trading stocks

[05:17] lost close to 10 lakhs. If I am in this financial year this time By the time it ends, I realized that this time I can file ITR and carry that loss for four years. So if I carry it, then

[05:31] I do n't need to pay tax. Even if my tax comes to the tax-paying range, I have already lost 10 lakhs, that's up to four years. Whenever I gain for the next four years,

[05:44] Intraday clarity has come, right? If you are gaining, if you are getting means profit, those who have no income, up to 5 lakhs, they don't have to pay tax here and there. If you have income, then 5 lakhs, they don't have to pay tax here and there. If you have income, then

[05:56] on how much range you are coming in, a net taxable income will come. There are How much tax do we have to pay depending on whether we get taxable income? If we lose, we

[06:09] related, if it ends intraday within one day, within one day, if it is more than one day and less than one year, it is sell it after one week, if I sell it after one month, six months, eight months, nine months,

[06:24] exactly 11 months, I sell it literally more than one day, less than one I get is short-term capital short-term capital loss. The

[06:39] But for us, if your income is only short- term capital gains, because stocks after a few days or a few months with the money in their account, then in that case, note here that I am going to capital gains, I am going to

[06:52] short-term capital gains, here I am not need to pay any tax,

[07:04] say that I will enter 340000, see they say that I have to pay tax near 1040, so I said in the beginning that you do not need to pay short-term capital gains up to 330000, if

[07:18] get other incomes, then the structure changes, how did I say that I will say 330000, see there is a basic exemption up to 250000 Then we have a rebate according to government rules, we

[07:32] capital gains are not 5% but 15%. So if we look at it that way, if we calculate 15% for how much money we get 12500, then we

[07:48] whatever the government rebate has given us, 12500, it will it will

[08:00] So we do not need to pay any tax up to 333000 because we do not need to pay any tax up to 333000 because we can use the 12500 rebate given by the government up to that point.

[08:14] those who are gaining, but what is the situation for those who are losing? Friends, if you file income tax returns, you can carry it for up to eight years. Isn't it the best thing for up to eight years? Because of filing, this time you will

[08:27] Next second year, third year, you will again fall in the stock market. There is an opportunity. You invest and grow well. Then you Your previous loss will be set off by setting off this profit that has come now.

[08:41] You don't need to pay 15% tax, not 1%, so it will be set off. Let's say you are now in a loss of 10 lakhs, and you are filing ITR and carrying it. profit, and you have got 9 lakhs of profit. You can set off 15. The profit

[08:54] 10 lacs of loss were set and you have to pay tax on only 5 lacs. It is and in the beginning, we thought that there is no need to pay any tax related to long-term capital gains up to 350000. If that is

[09:08] Capital Gains in the Income Tax Calculator, earlier we entered the short-term capital gains covered long-term capital gains covered under 112a, so the

[09:23] total is 350000. They say that I do not need to pay any tax. If I add 351000, the tax is calculated for that 1000, so up to 350000, I do not need to pay tax.

[09:37] With what logic did the basic exemption limit of 250000 come to 250000 and not the remaining 1000? According to the rules, long term capital gains take 10% but not on the first 1000 but on the earnings coming above 1000. So the first 1000 will also give

[09:50] us an edge. So the advantage of being related to 250000 basic exemption plus 1000 long term capital gains is that, here the rebate does not work, we have no use for rebate here.

[10:06] will talk about set off, I will Here we will discuss future and options in Profits and Gains of Business of Profession. It says, you have to enter there, so you

[10:20] don't have to pay any tax on your income up to 500,000. If you are in the old income tax bracket, you have earned a little more than 500,000 from any other income. If you have earned 500,000, that extra, you will lose that rebate. That rebate will

[10:33] also be added to your tax. So, if you can bring your net taxable income up to 5 lakhs, So, if you can bring your net taxable income up to 5 lakhs, tax, how much should you pay? Business income is exactly how much you

[10:49] pay for your income. You have to pay as much as your income tax bracket. But the bracket. But the don't spend anything on it, the organization you are in You are being given a salary,

[11:01] income, right? And if you have a business, there will be expenses. Like, if you are be expenses. Like, if you are earning more through futures and options, then you can

[11:16] internet bill, paper, or if you are hiring someone, even if you are going on a tour, you can

[11:28] deduct all of that from it and pay tax on the rest. So when you remember that we show most of the expenses in it and reduce that income a lot and we can pay tax on it. Okay, I have a loss. But

[11:41] you still file the ITR and mostly lose in the starting stages but in the upcoming years if they gain and earn good profits then should they

[11:58] first they file ITR and carry forward the losses they have made then for the profits coming in the future the losses in the past will match the two and we can pay the remaining amount net to net like in the past I was

[12:11] I got a gain of 5 lakhs zero tax then the next year I got another profit of 5 lakhs zero tax those 10 lakhs loss till I get set off in the eight years time period which is called assessment years here now let's come to

[12:23] off we have gain if there is loss if there is gain if there is previous loss If we file ITR and carry forward, we can set off with it. Suppose there is a loss. We can set off with the gain coming from other things and

[12:36] reduce the tax. I will tell you simply. But there is a probability that you will get confused. I will also put its related image here for you. So that you can pass the video and give it some time and you can understand it. I will tell you simply. Suppose there is a short-term

[12:49] capital loss. Then you capital loss, suppose you carry it for more than one year and you

[13:01] can set off with only long-term gains. Is this complete? And if carry it for the next four years. And can we set off that loss with something else or not? You have to set off with the profit that comes with intraday,

[13:14] period. So intraday is only with intraday, whether it is loss or gain, it will be set off with them. loss again with long-term capital gain, there too, with anything else. Short-term only, short-term capital loss

[13:34] business income, when capital gain comes to us in business income, various options are open to us. You Or you have done some other business, you are doing small businesses outside somewhere, you

[13:49] can set off with what comes through that. So like this, you will carry the loss as FNO related,

[14:01] taxable income as FNO related. This is the same as dividends. Dividends will be taxed on you to the extent of your income tax lab, but here you need to remember one thing carefully, particularly beginners, for

[14:15] in your related financial year, you may have TDS cut for many of them. Dividends will also be cut related to dividends. If you Dividends will also be cut related to dividends. If you you will get TDS cut for dividends. Close to 10%. So where is that TDS cut?

[14:27] Because in some cases, that person does not have any requirement to pay tax on the actual income tax net taxable income. we will deduct it. If you are deducting TDS, there is no requirement to be afraid.

[14:41] You can file ITR and get a refund of that TDS. So TDS is nothing but is not going to the government. You may have a Then you can adjust that TDS and pay it.

[14:54] Let's say you have ₹100 TDS deducted. Someone cut it. Suppose you had ₹100 income tax at the end of the last financial year. Suppose you had ₹ 100 income tax. Out of that ₹100, ₹900 will be deducted. You can pay tax. Or you do n't have to pay any tax. There is no tax

[15:07] 1000. Then you can get the TDS deducted as a refund from your bank. If you file ITR, it will not be returned. Again, if you are making fixed deposits, the interest earned on it will also be deducted by the banks.

[15:23] deducted, those below 60 years of age can fill 15 g and those above 60 years of age can fill 15 h form and give it to your bank, they will not go into the topic. I hope you can check taxes and related information on the

[15:37] income tax site and where you should enter them and you should understand. Friends, I have talked about where to enter these columns. If you think that other incomes are also coming, like income from salary,

[15:51] enter your salary here, or there are other capital By entering all of them here, you can officially know your net taxable income and through the calculator. I will give you this link in the comment

[16:05] tax harvesting. Let's talk about multiple things. Let's reduce tax on the gains that come to us. First, if we ever get a loss and don't leave it like that, if we file ITR, we can

[16:21] remember this. We neglect it because when we get a loss, we already have a loss. We have to spend a lot of money to file income tax again.

[16:33] But no, file it like that. Who knows what profit you will get in the coming times? Where will we get profit from in the coming times? So, don't forget to carry the losses as a must and should. So, what happens if you carry them? You can set off the gains coming in the future. So this is one way.

[16:47] Another way to save tax. All this is also another way. The entire long- term capital gain will be yours because there is a logic in it. We now let's talk about how we can gain.

[17:01] capital gains exceed one year, they will also fall above 1000. 10%. So how can we apply this logically as a theme? Understand it well. Let's say not short term, long term, one five years, 10 years, 30 years, or for the

[17:16] next generation. But if it is possible for you, if you are booking profit annually, annually, one one lock, then according to the zero tax. So that doesn't mean we don't pay any tax. I know, now

[17:30] you can understand it. Let's say you put 1000 and today You bought a stock, let's say it has become 30 locks after 30 years, pay? You have 30 locks, your capital is 1000, if you subtract 29 locks, out of that

[17:45] 29 locks, there is no tax on 1000, the remaining amount is 28 lakh 28 lakh 10% 280000 This is the tax you pay, if you think that for 30 years, you will think that for 30 years, you will

[18:00] you will have zero tax in the end, this is the best case scenario, but who knows, that stock would have been in loss for three years and suddenly gained a lot otherwise it would have been neutral for three years and

[18:14] given a lock profit of ₹2000 in the fourth year and fifth year, and then least it will decrease by 1000. Booking a profit is easy, but I am compounding will be impacted, right? That is, even 1% will not impact your compounding.

[18:27] Why am I saying that? Suppose you invested 1000 and sold it for 2 lakhs. If you gain and then buy stocks for 2 lakhs next time, will the percentage shown there change? Will that percentage change? But the returns will remain the same, will the net returns not change? The

[18:40] same. There will be no impact on compounding. But the thing is, if I sell today, I should buy tomorrow, because if I buy it intraday, it will be squared off. I should buy tomorrow, and if it gains 5% overnight, it will be a

[18:53] loss. I will be, is there a strategy that we can use for this, account for two, maintaining two demat accounts, here there are stocks, but multiple stocks, so I am saying that there should be two demat accounts,

[19:06] so here you are selling a stock, selling it with a gain of 1000, you selling it with a gain of 1000, then before selling it here, you should buy it in this account for 2000, then sell next trading sessions, that money will be released in the demat account, then

[19:20] transfer that money to your bank account, so net to net, there will be otherwise you can buy another stock in another trading account or here, where you sold it, in the next trading sessions You can do whatever you want in the market but

[19:33] before selling in two demat accounts, you can buy in another demat account and execute this strategy. If you in another demat account and execute this strategy. If you buy in the next trading sessions. Since the capital will be released, there may be

[19:48] be positive or negative for us, so there will be some impact on the returns. Therefore, what we stock gains in one day, if there is such a fear, maintaining another demat account would be the

[20:03] Either do it with two demat accounts or buy in another trading session with the same demat account. Do it and finally we have gained in all the stocks, right? the market has fallen a lot. We are in loss in many stocks.

[20:16] Even in good quality stocks, we have gain in some stocks. Otherwise, we will sell that stock because the theme has changed. So there is gain. So I got a gain of 5 lakhs. If we I got a gain of 5 lakhs. If we

[20:28] stocks I held above one year, I have a loss of 5 lakhs, 4 lakhs loss, 3 book it, the loss that came there will go here. These two will go. I will pay tax on the remaining amount. That too after 1000 because long-term capital

[20:42] So let me tell you with an example. I have a net amount in my portfolio that I held above one year. net amount in my portfolio that I held above one year. lakhs of loss is not touched mostly we only touch the gain

[20:55] gain no loss no it does not touch it our mind does not agree to sell the loss I kept the loss like that I sold 5 lakhs means the gain coming 5 lakhs is sold all that in stocks I got 5 lakhs profit I have 1000 no

[21:08] tax on the profit remaining 4 lakhs on which 40000 should have been taxed apart from that if I had booked the 300000 here also my 5 lakhs here go 3 lakhs here I have term capital gains I do

[21:20] not have any requirement to pay remaining 1000 I will pay 10% I hope this logics If questions related to this tax, you have an idea related to this topic, try to clear them for us. Because

[21:37] people. Actually, there are videos related to this topic on our channel. Why am I telling you again? explain some other tricks that I know to you so that you will understand a little better.

[21:52] interesting and friends, be sure to share this video with our you find these efforts that we are putting in valuable, be sure to like this video and support us and our channel further. If you need to

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