Stock Gains Vs Loss: What Gets Taxed?
Do you have income tax-related queries?
Please ask your questions HERE and rediffGURU T S Khurana, a fellow member of The Institute of Cost Accountants of India, will answer them.
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Anonymous: I am planning to travel to the US in June. I currently have 5 lakhs in my bank account. Since the market is down, I am considering investing that amount in stocks. Let's say I buy shares worth 5 lakhs now. Then in July, when I need the money, I sell them: If the value becomes 5.5 lakhs, will I be taxed on the full 5.5 or only on the 50k profit?
I assume it's short-term capital gains tax at 15%? If instead the value drops to 4.5 and I sell at a loss, will I still be taxed?
Could you please clarify this? It would really help me plan better. Thanks in advance!
In the situation narrated in your question, you shall be taxed only on Rs 50,000 (the profit earned), under Short Term Capital Gain.
If you happen to incur loss on the sale, you won't have to pay any tax.
Vijayaraghavan: I receive interest income of about Rs 700,000/- a year. Can I file Form 15H to avoid TDS in view of NIL tax on income up to Rs 12,00,000?
You should not file Form-H, since your income is more than the minimum income chargeable to income tax. However, if this is the only income you have, you should file your ITR & claim refund, which should not be a problem.
I would even suggest you to file your ITR on regular basis. This takes care of many problems and also helps you in many situations.
DEELIP: Dear Sir, i have to sell my two houses on 24.02.2026 i have purchased one house on 23.02.2011 and another one is 2012. 2011 house my purchase cost is 24 lakhs now i have sale it for Rs 31 lakhs. on 2012-13 house purchased on Rs 25 Lakhs and sold for 58 lakhs.
Please inform me what is the LTCG i have to pay and how to avoid LTCG?
You should file your ITR by calculating your LTCG with Indexation, which may work out to be in loss. In such a situation, you don't have to pay any taxes.
However for your kind information, you can plan your LTCG & reduce tax liability by purchasing/investing your LTCG in a residential house.
Sourabh: Sir, I was working with Cholamandalam DBS Finance ltd from Period 2007 to 2009 back then UAN and Aadhar card were not there, i left company and company name changes to Cholamandalm Finvest …. i have my PF number (chennai Tamil Nadu), i have tried contacting HR and PF office but both are saying they do not have any details of my account with them, how to proceed / it's been long time,…i have tagged seniors of the department finance ministry to no use.
Since you have got your PF Number, so you might also have any latest account statement of your PF Account. If not, first get account statement, so that you are sure of the balance standing in the account. Kindly note, when PF number is there, the department must provide you its account statement also.
Once you get the account statement, then proceed to request the concerned PF Officers to help you in withdrawal of your funds.
In the meanwhile, when you were in job, your might have some record of your PF account, like annual statements. This may also be helpful in making your case stronger.
Anonymous: I have retired at 65 years in January 2026. Can I leave my PF money in PF account for three years so that it will earn interest at 8.25% p.a or should I submit Form 19 and withdraw full amount this month or next month.
I have another question: my organisation has wrongly marked NCP days and written a letter to PF office to correct it. Hence my EPS is on hold on which I should get my arrears for the last seven years, what should I do if this issue is delayed, will NCP days affect my PF final settlement in any way.
I have a total service of 11 years 2 months with regard to EPS and 13 years 2 months with regard to PF.
Please advise and point me to the exact rule of EPFO on their website with regard to my questions. Please advice.
You may not immediately withdraw your amount from PF account & keep earning interest there. It is a good option to keep earning better interest.
You should keep following up your case with the concerned officer who reported NCP (non-contributory period) days & PF Office, to settle your case based on the facts.
Your NCP days should not in any way, affect your PF account final settlement.
You can ask rediffGURU T S Khurana your questions HERE
Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.
Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.
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