Sale of Shares

Hi,

If the shares are listed then the following rules are applied.

Long Term - Shares held for more than 12 months and then sold which is Long Term Capital Gain is exempt U/s 10

Short Term - Shares held less than 12 months and sold then it is termed as Short Term Capital Gains and the tax rate is 15% from Asst Year 2009 - 10 (Earlier it was 10%)

I agree with Mr.Balaji. One important thing to be kept in mind is that the transaction of shares should be through recognized stock exhange with payment of applicable STT.