Stock Markets Exposed

how is tax system in stocks trading. Is it applied over whole income or on the capital gain only?

Public Comments

1. If you are asking about Indian Tax system, capital gains is separate. Short term gain (held for less than a year) attracts a 15% tax while long term has 0. The tax is again only on the "nett" profit; i.e. you make profit of Rs. X on one sale and loss of Rs. Y on another in short term for the FY, the tax at 15% will be on (X - Y)
2. Hi Dear On Capital Gain only. Stt has to be excluded from the cost
3. Tax on short term capital gains from the sales of shares where you paid security transaction tax is 10% (for AY 2008-09) and 15% (for AY 2009-10) while there is no tax on long term capital gains. If you hold shares for more than a year, you have long term capital gain. Read about Capital gains, computation of capital gains and income tax rates on capital gains: http://mytaxes.in/index.php?topic=30.0. For all the available Exemptions from Capital Gains under Sections 54, 54B, 54D, 54EC, 54F, 54G, 54GA, read: http://mytaxes.in/index.php?topic=31.0.