Stock market taxes

POSTED BY Kirubakaran ON February 4, 2013 5:22 pm COMMENTS (3)


 I work in a software company where my tax payments happen by deduction at source.


 I do trading in stocks. For instant, I buy stocks at 50000 and sell at 70000 I get a profit of 20000 and how much do I need to pay taxes?


 Will they deduct taxes automatically at the transaction or I need to pay taxes separately as in My Form 16 it would not reflect.


 Because, it happened me. As I got some profit last year, but I did nt pay any taxes separately.


 Could some one please throw light on this?



3 replies on this article “Stock market taxes”

  1. Kirubakaran says:

    Thanks Ashal,

    Is that mean if I sell share within a year, they will deduct tax and give the rest of the money or do I need to pay the taxes later on March? Please clarify.

    1. You will have to pay the tax yourself later !

  2. Dear Kirubakaran, the holding period of your stocks ‘ll define your tax liability. If it’s less than 1Y, Tax rate ‘ll be 15.45%. For more than 1Y holding, the tax is zero. Yes the gains are tax free here.

    So please confirm the holding period first.



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