Firm - Doing Share Trading as one of business activity

In India the capital gain taxes are a type of direct tax. These are paid by both individual and institutional investors. These taxes are normally collected by the national government and the primary area of taxation is the capital gained from the sale of these assets. 

Corporate capital gains taxes are applicable for all domestic companies. The short term capital gain are normally subjected to basic rates applicable for income taxes. The rate for the long term capital gain varies between 10 and 20 percent.

Companies need to pay a tax of 15 percent on the short term gain made from selling units of equity based funds. Conversely, long term profits accrued from similar sources are not subjected to taxes.