When Purchase of shares...?

Hi Friends........

Could any one tell me what the things should consider and what the observations take into mind...?

And where taxes are applicable  - at purchase of shares, any fringe benefit tax applied..?

And some Question regarding - brokerage?

Thanks & Regards,

A.Jayasri

Replies (4)

What is the care should be taken at the time of purchase of shares in a company....?

as the shares purchase is made from tax paid income, so the question of taxability does not arise at the time of purchase, though at time of purchase, certain taxes are applicable apart from brokerage, viz service tax, security transaction tax, etc.

 

as shares are part of capital asset, so there is no tax if we sell them after holding in demat for more than 365 days, this type of gain is LTCG, and is fully exempted u/s 10(36) if security transaction tax is paid at the time of sale.

if we sell them within 365 days then sec 111A applies and such gains ( sale price less cost price) is taxed at special rate of 15%.

Wow. Your explanation is very nice and Thank you.  And one line which i didnt understand, As the shares purchase is made from tax paid income,?

I didnt understand this line. can you explain me once again if you dont mind.

Very Well Explained. thanks.

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