I have short-term capital gain (STCG) from listed shares for the financial year 2024-25. My broker has deducted tax on it. In March 2025, I incurred some losses in some other share transactions. The loss incurred is more than the amount of profit earned earlier. How I can take the benefit of the tax already deducted and other notional loss of shares lying with me.
Since tax has been deducted at source (TDS) on STCG by the broker, I presume you are a non-resident for income tax purpose and the broker has deducted the tax under Section 195 of the Income-tax Act, 1961 while remitting money to you.
However, in case you are not a non-resident Indian (NRI) and tax has been deducted, then seek clarification from your broker, as the broker is not supposed to deduct any tax at source on any capital gains of residents.
Do note that you cannot claim any tax benefits in respect of the notional loss i.e., on the shares which you have not sold and which have just depreciated in value. As regards the loss already booked on the shares sold by you, you can file your income tax return (ITR) and set off the losses against the STCG on which TDS has already been deducted and claim the refund for the tax deducted by the broker.
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I am a senior citizen. I have booked a flat for which I will receive the possession in 2027. During 2024-2025, I paid Rs 27 lakh to the builder and TDS was deducted at the rate of 1 per cent on the amount paid. The same amount is reflecting in my form no. 26AS. In which column of ITR-2 will this TDS and payment to builder reflect?
The TDS is deducted by you on the amounts paid to the builder, for which the builder will get the credit against his tax liability, so the same cannot and need not be shown in your ITR, as you will not get any credit for the TDS deducted and deposited by you.
Tax deducted by you is to be recovered from the builder. So, you need to pay the builder that much lower amount towards cost of the flat. The TDS has been paid by you on behalf of the builder which you can recover from him and for which tax credit is available to the builder.
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I would like to know if interest credited on savings accounts are subjected to TDS deduction on the lines of fixed deposits. I am looking to open a bank account with a bank which offers 7 per cent interest currently. Is tax deducted by the bank from the beginning or is there any limit to it? I am a student right now and unemployed.
Under the existing provisions, banks are not required to deduct any income tax on amounts credited to the saving bank account of resident taxpayers irrespective of the amount of interest credited.
However, for FDs, banks will deduct TDS at 10 per cent in case the interest exceeds Rs. 50,000 per year. The limit of Rs 50,000 is calculated with reference to all the branches of the bank taken together. In case of senior citizens, a higher limit of Rs 1 lakh rupees is prescribed from the current financial year. Once the amount of interest exceed the threshold prescribed, the tax will be deducted on the full amount of the interest earned.
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The author is a tax and investment expert and can be reached on jainbalwant@gmail.com
(Disclaimer: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.)
