Taxes on Investing

. Tuesday, August 24, 2010

short-term capital gain:  
If the investment is in the form of mutual funds/company shares, the time duration is one year.  But if the transaction was levied with Securities Transaction Tax (STT), your gain will be taxed 10%.

Long-term capital gains:
If shares are held by the tax payer for more than 12 months, then gains arising from their sale/transfer are treated as long term capital gains. If the period of holding is lower, then such gain is treated as short term capital gains. 
But if the transaction was levied with Securities Transaction Tax (STT), your gain will be taxed 10%. 

All stocks you buy on exchanges are levied STT

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