Q 1. ITC shares owned jointly by my brother- in-law & my wife has been transferred in the joint Dmat a/c of myself & my wife more than a year back. I sold those shares at a total amount of Rs.1,59, 000. Since I got those shares free of cost as gift, I did not spend any amount for procurement of those shares and the entire amount is profit in the true sense. What would be tax liability for me ?hold those shares for more than a year

Your tax liability would be Nil if the shares were sold by you in the Stock Market and a Securities Transaction Tax (STT) has been recovered by the broker. Since you have received shares as a Gift, cost of acquisition for tax purposes will be cost to the donee i.e. to your brother-in-law and you will be assumed to have held the shares ever since your brother-in-law had acquired them - which will be more than 1 year.

Q 2. If I have purchased 3 stock of L & T at Rs.2993.11 (on 30-5-08) and 2 stock at rs.2777.60 (On 4-6-08).Then company has given bonus of 5 stocks (1:1 bonus) on 14-10-08. Suppose I sell all the above stock on 9-1-09 at rs.800 then what will be the short term Gain / loss for original and bonus stock individually? What is the short term gain tax?10% or 15%

In case of Bonus shares cost of acquisition is taken at nil. For the stock which you have Purchased, the total cost of acquisition is Rs.14534. When you sell stock, it is assumed to be delivered on a First in First Out Basis and the sale price less cost price is taxable as a short term capital gain. From the figures given by you, it appears that there will be a capital loss because the sale price is Rs. 8000 (for 10 shares) and the cost price is Rs. 14535.  Short term capital gain is now taxable at 15% provided shares are sold through recognized stock exchange and STT

Q 3. I do share trading including intra-day, delivery based buy-sell, margin trading. I hardly use an amount below 20,000 , but use the same amount for all the transactions resulting in transaction turnover. I may end up in loss or profit by the end of financial year. while filling my returns, do I need show all these transactions? If so, can I calculate myself or have it done by any official?

Yes, you need to show all this transaction while filing your IT return. If trading in shares means buying them, taking delivery and then selling them off, then these transactions could be treated as short term capital gains or business income. In either case, the profit and the loss can be set off against each other. If trading in shares means buying them and squaring off the transactions on the same day without delivery, it could be treated either as speculative business or, if not often enough, then as Income from Other Sources. Again, in either case, the profit and loss during the same year will be adjustable against each other. You need to
show accordingly net profit or loss from all these daily transactions. You can calculate it Yourself. However if the frequency for transactions is large and the total amount of turnover from sales as well as intra day squareups exceeds Rs. 40 lakhs in a year, you need to maintain books of account and get these atx audited from a Chartered Accountant.

Q 4. My annual earning including short term capital gain (share) is below the taxable limit. Shall I have to pay tax for short term capital gain @15%?

No, if your total income is below taxable limit, you are not required to pay any tax on short term capital gains, provided you are a resident of India.