Hi all, if i buy a shares today at a rate of 10,000rs and when i sell the shares with a profit of 5,000 then what will be the income tax i need to pay and how it works... i heard in some news channel there are different type of investors and diff type of taxes on it... 1)if we sell the shares with in 1yr it be 15% income tax 2) if we sell in btn 1yr to 3yr it will be 0% income tax 3) if we sell after 3yrs it will be based on normal income tax slabs... is this correct ???? if wrong please correct me... Thanks in advance
Short term capital gains (less than a year) from the stock market will be subject to 15 percent tax whereas long term investments (>12 months) in equities and mutual funds (that invest in equities) are exempt from tax. Dividend received on shares held in a company is fully exempt from payment of tax.... Where as for Non equity MF's for a period less than one year the tax rate applicable as per individuals tax bracket and for a period greater than one year it would be 20 percent for listed funds (With indexation) and 10 percent for unlisted funds without indexation...
