Tax on Profit

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i have purchased 10 shares of a stock at 193 in march ,when market crashed  june  i purchased 20 at 100, now it is 150 ,if i sell now  on what amount i have to pay tax on profit,overall profit ?

Replies (3)

your cost = 10*193=1930+20*100=2000 (2000+1930=3930)

your sp=30*150=4500

your cg = 4500-3930 = 570/-

Continuing with what Nitin said, your income will be Rs. 570/-. However, whether your income will be taxed as Capital Gain or as Business Income will be determined on the nature of your activity in dealing in shares. Accordingly, the rate of tax will be different in both cases. Short Term Capital Gain will be taxed @ 10% flat rate. While in case it is taxed as Business Income, normal tax rates will be applied after deducting the basic exemption.

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