TAX ON SALE OF EQUITY SHARES

This discussion clarifies the tax treatment for selling equity shares, differentiating between short-term and long-term capital gains. Short-term capital gains (STCG) on shares traded on a recognised stock exchange are taxed at 15% under Section 111A, provided specific conditions are met, including the payment of Securities Transaction Tax (STT). If these conditions aren't fulfilled, STCG will be taxed at your normal income tax rate. The maximum surcharge applicable to gains under Sections 111A or 112A is capped at 15%, regardless of your total income.