How to calculate profit from stocks?

POSTED BY ravikumarvj ON October 22, 2010 11:15 am COMMENTS (2)

Hi,

How can I easily calculate the returns from stock market, for income tax purpose?

We need to take care of lot of things like short-term capital gain, depository charges, STT, service tax, brokerage, account maintinace charge, while calculating the returns. Is there any easy way of doing things?

Thanks

Ravi

 

2 replies on this article “How to calculate profit from stocks?”

  1. Manish Chauhan says:
    October 22, 2010 at 3:21 pm

    Ravikumar

    You might want to use some personal finance software which can access your bank account and other things to give you all the details you require .

    Other wise you have to manually do it

    Manish

    Reply
  2. Anand says:
    October 22, 2010 at 1:48 pm

    One thing I can tell is that ‘account maintenance charge’ does not come into picture when you calculate profits, at least when you calculate for tax purpose.

    The following is my understanding. Please correct it if I am wrong somewhere.

    If I buy some stocks, some amount (includes brokarage, tax etc) is deducted from my bank account say 344.00 and if I sell these stocks say at some high price then some amount is credited to account (after deducting brokerage, service tax etc) and I get say 400.00

    Then my cpaital gains are 400-344=56.00

    If it is short term (less than 1 yr), I need to pay 15% tax on this profit and if it is long term (more than 1 yr), I need not pay any tax.

    In short, profit = what comes in my hand – what goes out of my hand

    Reply

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