Stock Markets Exposed

With respect to Indian Stock Market, what is the percentage of tax when shares are sold?

If stock of a particular company in India is purchased and sold after couple of months, booking profit, how is tax computed? What is the percentage tax applied? If sold after a year of purchase, then what are the tax implications?

Public Comments

1. below one year ----10% on your net gain above one year----- no tax
2. TWO types of tax are involved in STOCK MARKET proceeds 1 personal income tax If you are a tax assess you have to add the profit that u have got from that trade to your taxable income and pay the personal income tax accordingly 2 capital gains tax A scrip bought & sold with in a period of 365 days that is before one year attract 10% short term capital gains tax A scrip bought and sold above a period of one year no capital gain tax has to be paid how ever any divident paid by any company is not taxable in the hands of investor