Tax on Shares

POSTED BY GYDPrasad ON April 24, 2012 2:52 am COMMENTS (6)

Hi,

After 1 year mutual funds are tax free, is it applicable for shares also??

6 replies on this article “Tax on Shares”

  1. GYDPrasad says:
    April 25, 2012 at 9:48 pm

    Ok, thank you, i dont know the types of mutual funds.

    Reply
  2. wealthucreate says:
    April 24, 2012 at 11:00 pm

    You would have already paid some taxes while selling. after one year you dont have to pay any additional tax for the profits you make.

    I assume when you say, mutual funds, you are reffering to equity mutual funds and not debt mutual funds.

    Reply
  3. GYDPrasad says:
    April 24, 2012 at 9:53 pm

    After 1 year we need to pay the STT, what is the percentage of that STT Tax.

    Reply
    1. ashal jauhari says:
      May 11, 2012 at 3:58 pm

      Dear GYDPrasad, the STT rate for delivery based transactions is 0.125% of the contract value.

      thanks

      Ashal

      Reply
  4. BanyanFA says:
    April 24, 2012 at 1:26 pm

    Yes, provided STT (Securities Transactions Tax) is paid at the time of sale. This would always be the case if you sell your shares on stock exchange. However, if you do an offline sale / transfer, for example transfer of shares from your father’s demat account to your demat account, then No STT is paid in such a case and hence your transfer would attract Capital Gain tax.

    Regards
    BanyanFA

    Reply
  5. Anand says:
    April 24, 2012 at 12:20 pm

    Yes, profit from shares is also tax-free after 1 year.

    Reply

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