Query related tax calculation on share market profit

Hi All,

I have few questions related to tax calculation on share market profit. 

  1. How is tax calculated on profit from share market? Is it flat 10% or 15% or profit amount is added to my annual income and then percentage depends on tax slab in which my total income falls?
  2. I have purchased a ABC share at different times with different price and sold partial quantity . For example see below table

 

Scrip Buy/Sell Date Qty Rate Total
ABC Buy 15-Apr-09 100 125 12500
ABC Buy 20-May-09 150 160 24000
ABC Buy 5-Aug-09 200 175 35000
ABC Sell 10-Oct-09 175 190 33250
ABC Buy 20-Oct-09 200 205 41000
ABC Sell 21-Oct-09 200 210 42000
ABC Buy 5-Nov-09 100 160 16000
ABC Sell 5-Nov-09 100 164 16400

Blue colur is delivery based and orange color is Intra day trading.

How to calculate the profit on ABC from above table? which method is used to calculate the profit? I mean FIFO(first in first out ) or anyother method.

3.    Do profits on deliver based and intra day trading should be calculated seperatley?

 

Regards

Chandra

Replies (4)

hello,

profit on shares is calculated not with the slab rates. It is to be calculated according to its time period u kept the shares on hold. If shares are kept on hold with u for less than one year it is short term gain otherwise long term. For longterm gain tax rate is flat 15% subject to some conditions. For short term gain it is 10%. It is in no way to be included where slab rate is applicable.

YES AGRRED WITH ABOVE. AND YOR ARE REQUIRED TO FOLLOW FIFO METHOD FOR DELIVERY BASED STOCKS AND FOR INTRADAY INCOME WILL BE TREATED AS SPECULATIVE BUSSINES INCOME.

I am confused. 

Please clarify  for lognterm gains in share market (shares sold after 12 months and made profit) is taxable at 15%? 

Originally posted by : chandrahasa

I am confused. 

Please clarify  for lognterm gains in share market (shares sold after 12 months and made profit) is taxable at 15%? 

 NO, LTCG IS EXEMPT FROM TAX AS STT IS ALREADY PAID ON SALE

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