John Ripath Prabhu (Accountant) (61 Points)
08 March 2010We are a Private Limited company and we are planning to open Demat account .
can anyone brief us about the tax implication when we start investing in shares.
Only short term and long term capital gain or applicable or any other tax applicable for this
santhosh
(CA)
(636 Points)
Replied 08 March 2010
When company starts trading in share it is deemed to be speculative business and not capital Gains..
John Ripath Prabhu
(Accountant)
(61 Points)
Replied 08 March 2010
Why not the company can invest in various shares .
It is called as investment and not speculation.
santhosh
(CA)
(636 Points)
Replied 09 March 2010
If it Invests in shares , then on a later date if it sells then it is capital gains.If it Trades in shares (Shares are stock in trade) then it is speculative income..... You HOPE THAT OTHERS ARE WRONG IS IT 
SANTOSH
(BUSINESS)
(46 Points)
Replied 12 March 2010
I AM FULLY SATISFIED WITH MR. JOHN RIPATH PRABHU.
John Ripath Prabhu
(Accountant)
(61 Points)
Replied 16 March 2010
when the company hold shares for more than 12 months and the gains earned is termed as long term capital gain.
Long term gains is charged at lower rates than short term gain.
when the shares are held for less than 12 months and the gains is termed as short term capital gain.
Mr.Santhosh , do you think you are always correct . 
Ramalingam K
(Founder & Director - Holistic Investment Planners (P) Limited)
(21077 Points)
Replied 19 May 2014
If you are a Non-Resident Indian (NRI) and returning to India, you may have certain income tax worries. You may be curious to know that. The following lines may satisfy all your queries.
https://holisticinvestment.in/blog/returning-nri/
Regards
Ramalingam K, MBA, CFP,
Director and Chief Financial Planner,
Holistic Investment Planners
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