Hi,
I am a retail stock market investor. I bought Rs.1 lac woth of shares in Jan 2011 and Rs.50K worth of shares in Sept 2011. I want to sell them soon. If I sell, I am expecting Rs.2.25 lacs on sale of Rs.1 lac shares and Rs.75K on sale of Rs.50K shares. In total, I will get Rs.3 lacs with a profit (gain) of Rs.1.5 lacs. I understand that Rs.2.25 lac constitues LTCG and Rs.75K constitues STCG.
How to compute my income tax liability on this share sale? I fall in 20% tax bracket
Under what section of IT Act does this come?
Is there a way I can save on tax by investing the sale money in another set of shares, mutual funds, long term FD, life insurance policy, etc? I cannot buy house because I don't have enough money
Thanks in advance,
Praveen