Goof afternoon sir, I My friend have STCG from shares about Rs 95000, dividend from shares is around Rs 12000. There is no other income. please guide whether he has to pay any tax or need to return the file.
Ans: Good morning Prakash,
Based on the information you've provided, your friend has Short Term Capital Gains (STCG) from shares amounting to Rs 95,000 and dividend income of Rs 12,000.
As per the tax rules in India for the financial year 2023, STCG from shares are taxed at a rate of 15%. However, if the total taxable income, including STCG, is less than the basic exemption limit (which is Rs 2.5 lakhs for individuals below 60 years), then no tax is payable.
In your friend's case, the total income (STCG + Dividend) is Rs 1,07,000 which is below the basic exemption limit. Therefore, he doesn't need to pay any tax on this income.
Regarding the dividend income, as of the financial year 2023, dividend income up to Rs 10 lakhs is exempt from tax. So, your friend doesn't need to pay any tax on the dividend income of Rs 12,000.
However, even if there is no tax payable, it is advisable to file an income tax return if the total income exceeds the basic exemption limit. In your friend's case, since the total income is below the exemption limit, he is not mandatorily required to file a return. But he may choose to do so for record-keeping purposes.
Please note that this is a general advice and the tax liability may vary based on individual circumstances. It's always a good idea to consult with a tax advisor for personalized advice.
I hope this helps!
