Regarding tax to be paid for the profit obtained from share market?



I am an indian trading in NSE.
I have made some profits from the stock market. While doing the transaction, i have paid Securities Transaction Tax for all the transaction. Now:
1) do i need to pay tax on the profit which i get.
2) since i am a salaried person, can i pay all tax in a single tax return.

Regarding tax to be paid for the profit obtained from share market?
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5 Replies to “Regarding tax to be paid for the profit obtained from share market?”


  1. There is no need to pay tax on your speculation earnings which has already suffered tax (STT). However, you have to declare the income in your return alongwith salary income before 31st Jully every year.


  2. Aree Mr.Sharma above me, sir you have got it wrong, there is no exemption on STT paid speculative income. Thats only for Long term capital gains.

    So u sir, wud have to determine your period of holding for the securities. If you held them for more than 12 months then its exempt u/s 10(38), else its taxable @ 10% as STCG.

    But if its an income from speculation, that is intra day trading, then its a business income and you wud need to calculate your total profit and loss on it and that would be taxed at normal tax rates, and you can claim rebate of STT paid on it. You cant deduct the STT from the profit. So profit has to be computed by adding back STT on all the purchase sale transactions.

    This STT thing has to be done even in the case of computing Short Term Capital Gains (STCG)


  3. Yes u have to pay the tax on profit and Can use same retrain to file the IT retrain

    So u sir, Wu have to determine your period of holding for the securities. If you held them for more than 12 months then its exempt u/s 10(38), else its taxable @ 10% as STCG.

    But if its an income from speculation, that is intra day trading, then its a business income and you wud need to calculate your total profit and loss on it and that would be taxed at normal tax rates, and you can claim rebate of STT paid on it. You cant deduct the STT from the profit. So profit has to be computed by adding back STT on all the purchase sale transactions.

    This STT thing has to be done even in the case of computing Short Term Capital Gains (STCG)
    14 hours ago


  4. you need to pay the taxes on the profits if the profit is from short term gain. You have not clarified whether u sold the shares with in one year of purchasing ar after one year and as such correct information cannot be given.





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