Regular Salary + Short Term Capital Gains Tax

In the last Financial Year i.e. FY 2014-15, I have income from Salary amounting to Rs. 10,37,000 for which as usual the ITR-1(Sahaj) is to be filed. 

However, in the same Financial Year, I also have Short Term Capital gains of Rs. 2,14,657 derived from Index Futures trading on NSE and for which the Securities Transaction Tax has been paid.

Do I have to pay an additional 15% Short Term Capital Gains Tax?

If yes, How will the tax be filed i.e. which form - ITR1,2,3,4 or Nth to be used.

Asked 2 years ago in Capital Gains Tax from Greater Mumbai, Maharashtra
Yes tax needs to be paid and the return to be processed is ITR-2
Swapnil Patil
CA, Navi Mumbai
29 Answers
4.3 on 5.0
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Short term capital gain is to be paid u/s 111A @ 15% in your case.
& ITR 2 is required to be filed in case of income from salary & short term capital gain.
Shiv Kumar Agarwal
CA, Delhi
225 Answers
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No you do not have to pay an additional tax 0f 15% on short term capital gains.

Under the provisions of Income tax Act, income derived from index futures is not short term capital gains, but it will be treated as business income and it will be added to your salary income and taxed at the applicable rate. Furthe you have to file return of income in Form No ITR 4 which has place to fill in business income after deducting stt and other expenses relating to such income.
Vijay N. Kale
CA, Hyderabad
248 Answers
4.9 on 5.0
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You have to pay additional 15% on Short term capital gains u/s 111A of Income Tax Act. You will have to file ITR 2, as ITR 1(Sahaj) is meant for income from salary and interest only and not for capital gains and business income.

If you are trading regularly,then its possible that income is treated as business income and taxed accordingly. 
B Vijaya Kumar
CA, Hyderabad
633 Answers
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Trading in Index futures is covered under Profit & Gains from Business & Profession.Therefore, Profit of Rs.2,14,657 shall be treated as Business Income & not Capital Gain.

Taxed at normal slab rate.

ITR 4 to be used.

Shyam Sunder Modani
CA, Hyderabad
1373 Answers
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