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:

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

  2. 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.

  3. GYDPrasad says:

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

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

      thanks

      Ashal

  4. BanyanFA says:

    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

  5. Anand says:

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

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