ON STOCKS AND INVESTMENT

UMESH SHIVARAJU 1
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DEAR SIR, KINDLY HELP..

  1. I AM PLANNING TO BUY A GOOD STOCK IN BSE IN THIS YEAR (2011-2012) FOR RS.4,00,000. I WOULD LIKE TO SELL IT IN THE SAME YEAR TO Rs.8,00,000 (I AM EXPECTING IT). WHAT'S THE CAPITAL GAIN ATTACHED TO IT? ONCE I PAY ANY CAPITAL GAIN TAX, WILL THE NET AMOUNT AFTER CAPITAL GAIN TAX BE CONSIDERED AGAIN IN REGULAR TAXABLE INCOME?

  2. I BOUGHT A STOCK FOR RS.50,000 IN 2008 AND SOLD IT IN MACRH 2011 FOR 1.8 LAKHS. WHAT'S THE CAPITAL GAIN ATTRACTED TO IT? I HAVE RECEIVED THE MONEY ANYWAY. IN FACT, I HAVE NOT CHECKED WITH THE STOCK BROKER WHETHER WHAT TAXES ARE CUT DURING THE TRANSACTION APART FROM BROKERAGE CHARGES. PLS EXPLAIN WHETHER I HAVE TO PAY FOR THIS GAIN OF RS.1,80,000 - 50,000 = 1,30,000 DURING MY INCOME TAX FILING?

KINDLY ADVISE..

UMESH M.S. @gmail.com">kooleumesh@gmail.com

equity short-term-gains long-term-gains capital-gain income-tax
1 Answers
  1. If you buy and sell stocks within a year, the gain will be considered as short term gain.

Income tax on short term gain (in case STT is paid on transaction) is 15%. Once you pay this tax this won't be added again to your taxable income.

  1. For stock bought in 2008 and sold in 2011, long term gain applies. There is no income tax on long term gain from equity stocks is STT is paid on transaction.
Pankaj Batra5212

Thanks a lot sir. Let me clear it again sir. As on today If I buy a stock and sell it after 12 months, you mean to say there is no tax to be paid and need not show in my income tax. I know you have answered it a bit, however I did not find it candid. Kindly answer this Pankaj. very kind of you.

Umesh M.S.

UMESH SHIVARAJU•

if the stock is listed on Indian stock exchange and STT is paid on transaction then there is no income tax if stock is sold after a year.

Pankaj Batra•
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