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short term capital gain

rajendra (student) (95 Points)

19 June 2009

Hi! I have invested some amount in equity / share market of india. As my scriptts are giving me good return i want to withdraw my share. (to sell my stock) I am not understanding tax calculation in this matter. 1. what is short term capital gain? 2. do i have to pay short term capital gain?( if I do not pay ???) 3. how it is calculated on my profit? 4. who can help me out in calculation and paying STCG tax? 5. how much % of my profit it would be?

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(Guest)

Profit arising on transfer of capital asset is called capital gain.

In case of shares if period of holding is less than 1 year then it will be called Short term capital gain.

If period of holding is more than 1 yr then it will be long term capital gain.

In case of listed shares Long term are exempted from tax.

In case of Short term gain you have to pay @ 15% tax after taking advantage of basic exemption limit i.e 150000.

for example if your income is 175000 (incliding 30000 STCG) then your tax will be calculated as follows

(175000-150000)*15%

Always remember 15% is special type of rate which is chargable in case of gain arising from listed equity share(STCG)

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(Guest)

Hope its clear.

if there is any doubt plz post your reply.

rajendra (student) (95 Points)
Replied 19 June 2009

Thank you I am student and there is no another source of income, I have invested in stock from my pocket money. I earned 15000 thousand from stock market in Last year. I am not paid short term capital gain tax. I warring what will happen if I do not pay (because of lack of knowledge) pls suggest me how I do??