Short term capital gain due to sale of shares

Both are different. You will not get exemption

Hi Vyas,

Gains from stock 1 and stock 2 are taxable as short term capital gain in the same year. However if is a dividend reinvestment plan, u get tax benefit.

There exists a specific provision in the Income Tax Law to exempt the gains from sale or transfer of immovable property if such gains are invested  in any other immovable property on complying with the required conditions.

There is no such specific or general charge similar to this for shares.

Revert for clarifications on reshucakn @ gmail.com 

Thank you. Gains from stock-1 have been invested in stock-2 and stock-2 has not been sold. So, the query is related to the gains from stock-1. So, I understand from your response that the gains from stock-1 are taxable even the complete sale proceeds of stock-1 has been reinvested in stock-2 and stock-2 is not sold in that year. Did I understand correctly?

Yes Mr Vyas. You have got it right. There apparently has no link on whether the gains are further reinvested in any other shares or stock or not. 

Gains form Stock 1 are taxable and gains from Stock 2 are taxable in the year of sale.

However if it is sold after 1 year and has suffered Securities Transaction Tax, they are exempted from income tax.

agree with above

ramanuj