short term capital gain

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rajendra

student

95 Points Joined June 2009

Hi! I have invested some amount in equity / share market of india. As my scriptts are giving me good return i want to withdraw my share. (to sell my stock) I am not understanding tax calculation in this matter. 1. what is short term capital gain? 2. do i have to pay short term capital gain?( if I do not pay ???) 3. how it is calculated on my profit? 4. who can help me out in calculation and paying STCG tax? 5. how much % of my profit it would be?

Replies (5)

Guest

Profit arising on transfer of capital asset is called capital gain.

In case of shares if period of holding is less than 1 year then it will be called Short term capital gain.

If period of holding is more than 1 yr then it will be long term capital gain.

In case of listed shares Long term are exempted from tax.

In case of Short term gain you have to pay @ 15% tax after taking advantage of basic exemption limit i.e 150000.

for example if your income is 175000 (incliding 30000 STCG) then your tax will be calculated as follows

(175000-150000)*15%

Always remember 15% is special type of rate which is chargable in case of gain arising from listed equity share(STCG)

Guest

Hope its clear.

if there is any doubt plz post your reply.

rajendra

student

95 Points Joined June 2009

Thank you I am student and there is no another source of income, I have invested in stock from my pocket money. I earned 15000 thousand from stock market in Last year. I am not paid short term capital gain tax. I warring what will happen if I do not pay (because of lack of knowledge) pls suggest me how I do??