How are securities tax under the Income Tax Act(India).?



Under the Income Tax regulations, how are capital gains from securities taxed. What is the process of filing tax for these transactions with the Income Taz department

How are securities tax under the Income Tax Act(India).?
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2 Replies to “How are securities tax under the Income Tax Act(India).?”

  1. Securities Transaction Tax is recovered by the Government through the Stock Brokers/Stock Exchanges.

    Both from purchase price and sale proceeds of shares, you have to eliminate the above tax. Those figures will be used to determine your profits/losses on stock market transactions.

    Depending on your holding period of the shares in question, (more than 1 year or less), the gains will be long term or short term. On long term capital gains there shall be no tax. On short term gains, the tax rate is 15%.


  2. Short Term Capital Gains (STCG) from sale of shares through recognized stock exchange or units of equity MFs with STT paid are taxed @ 15%

    Short Term Capital Loss (STCL) from sale of shares through recognized stock exchange or units of equity MFs with STT paid can be adjusted against any Short Term Capital Gains (STCG) or Long Term Capital Gains (LTCG).

    Long Term Capital Gains (LTCG) from sale of shares through recognized stock exchange or units of equity MFs with STT paid are tax free.

    Long Term Capital Loss (LTCL) from sale of shares through recognized stock exchange or units of equity MFs with STT paid can be adjusted against Long Term Capital Gains (LTCG) from sale of shares through recognized stock exchange or units of equity MFs with STT paid.

    In your ITR you have to declare Capital Gains under Schedule CG.

    HMT





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