Comment on Classifying Your Market Activity

AYUSH GANGWAR commented on 20 Mar 2017, 10:21 PM

Dear,
Please clarify the taxable income in the scenario given as below :
1. I earned Rs 3,00,000 as income through professional service.
2. I also earned STCG of Rs 5,00,000 .
3. I made loss of Rs 15000 in intraday trading.
Now in this case should I proceed as given below :
Total income = 300000+500000-15000 = 785000.
Suppose I have deposited 150000 in PPF to save tax.
Net taxable income will be =785000-150000= 635000.
Now tax is exempted for Rs 2,50000.
Net Taxable income = 635000-250000=385000
Tax @ 10% for 250000 = 25000 and tax @ 20% for 185000 = 37000. Total tax payable = 25000+37000= 62000
OR tax calculation should be :
Total income from professional services and intraday trading = 300000-15000 = 285000.
PPF Investment = 150000. Net Income after PPF investment = 285000-150000= 135000 ( Less than threshold of taxable income limit of Rs 250000). Nil Income tax but
For STCG of Rs 500000 = Net tax payable @ 15% = 75000.
Please clarify ??

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