Tax Applicability

This query is : Resolved

Harshad Desai (Querist)
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05 October 2009 1. I have purchased Andhra Bank shares 1000 nos. in 2001 through its IPO. While purchasing it were physical later I converted them to Demat. I bought these shares at a rate of Rs 10/- per share.

2. I want to sell these shares. Will there be any tax that need to be paid or applicable on the profit on selling these Shares? I am working for a private firm and my income tax is deducted at the source. Now the rate of these shares is Rs.100/-. My investment was Rs.10000/- and once I sell these shares for example for Rs.100/- then I get a profit of Rs.90000/-. If I need to pay tax please take the figures indicated and let me know.

3. I have contacted one of the CA, he indicated that you no need to pay any tax because it is long term investment and it is of nationalized bank and as per Income tax section 10 (38) Securities Transaction Tax (STT) is paid.