Short or Long term profit

I want to know an information about incom tax. I have invest into security. If I book profit from security in less than one year, what type of profit it will be called, Short Term or Long Term? Please tell me.

Thanks in advance.

 

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Replies (3)

hi, for any securities bought and sold within 12 months can be treated as short term profit or trading profit, depending on your nature and frequency of trading in the shares. for example you buy and sell various securities in regular intervals and the volume of buy and sell is frequent - it is treated to be in nature of trade hence treated as business income. if you just buy and sell securities within 12 months and your frequency between buy and sell is less - you can treat the profit as short term capital gain.

if you book profit for sale of securities which are held for more than 12 months - it is treated as long term capital gain and is exempted u/s 10(38) of I.T.Act. (subject to STT payment)

 

 

hiiiiii

if security like debenture, govt.securities(quoted)is sold within one year it is treated as short term capital gain.if share whether qouted or not sold within one year is treated as short term capital gain.if your business is of trading in share than it will be computed under business income.

if securities are sold within 1 year than its short term capital gains... subject to STT should be paid on securities and taxable at 15% now......

 

and

if sold after 1 year than long term capital gains ... subjest to STT is paid on securities .... than exempt from tax u/s 10 (38) of IT Act, 1961, else if STT not paid than taxable @ 20%

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