Dear Sir,
I have investment in stocks of NSE/BSE listed companies. Usually I had exit from some of the stocks (profit booking) and invest the same in other stocks. In addition, I have use my salaried income for purchase. Till date I have not taken any amount from trading the stocks. My question is Can I pay income tax to the capital gain generated by selling the stocks (which is reinvested)even though I have not getting any financial benefits.
Sincerely
Yes,
because there is no exemption on reinvestment of profits generated from selling stocks..hence you have to pay tax, unless otherwise you have already paid STT and it is short term capital gains taxation.
Murali and Sumeet Chartered Accountant
Bengaluru
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