Unfortunately, the bank cannot do anything in it....
LAW IS WHAT LAW DOES !!!
good or bad....like it or hate it....LAW would remain law...
LAW IS WHAT LAW DOES !!!
good or bad....like it or hate it....LAW would remain law...
Fire your tax related queries and i would get it solved!!!
What I meant to ask is how would the bank calculate tax without know the trades? eg: I trasfer 1L to trading account from bank and after a week 50k back to bank from trading account. How will the bank know if this is profit or just withdrawing money back? The would need to know if I traded or not right?
Dear idiosys
Thanks for your help. I have a scenario, kindly give your views.
Shares bought jointly in the name of Mr. A, Mr. B & Mr. C in the year 1999.
These shares are transfered to the name of Mr. A in Aug 2009.
Mr. A sells these shares in Sept. 2009 for a large profit.
What will be the Tax outgo for Mr. A in terms of Capital Gains Tax?
Thanks for your help. I have a scenario, kindly give your views.
Shares bought jointly in the name of Mr. A, Mr. B & Mr. C in the year 1999.
These shares are transfered to the name of Mr. A in Aug 2009.
Mr. A sells these shares in Sept. 2009 for a large profit.
What will be the Tax outgo for Mr. A in terms of Capital Gains Tax?
Transferred by B and C means sale by them to A ???
If yes. then there would be short term capital gains in the Hand of A for the portion bought in Aug from B and C and Long Term gain for the portion bought in 1999....
BUT it would be 20% tax as long term capital gain for B and C because they did not sell it on the stock exchange and accordingly did not pay the STT. the exemption to long term capital gain is only available when the shares are sold on the stock exchange and the STT has been paid for the same.
If yes. then there would be short term capital gains in the Hand of A for the portion bought in Aug from B and C and Long Term gain for the portion bought in 1999....
BUT it would be 20% tax as long term capital gain for B and C because they did not sell it on the stock exchange and accordingly did not pay the STT. the exemption to long term capital gain is only available when the shares are sold on the stock exchange and the STT has been paid for the same.
The onus of deducting the tax and depositing to the government is with the person who is PAYING (there is a difference with paying and remitting) such money...Hence the bank is liable for TDS deduction and if proofs are not submitted to the bank to satisfy them "what is the amount chargeable to tax" then the bank would not have any option left rather than to deduct the tax on the entire sum....
Actually there is a technical problem...Suppose your broker is India Infoline and you have a NRE repatriable account with HDFC. You ask the broker to issue you a cheque of Rs. 10000 of the amount with them and deposit the same with a NRE account. Technically speaking India Infoline has "paid" to the NRI the said amount....Hence as per the wording of Section 195 TDS should be deducted by the broker itself rather than the bank....But then again this is a technical interpretations....Different companies have different interpretations.
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