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Questions on share trading in India?
I'm a beginner when it comes to playing the stock market. I just need to know how profits on selling shares will be taxed. Also if you hold shares for a long time say 3 yrs or so, will we be taxed only on selling them and the money is credited to our bank account or will you have to notify the tax department of the share value at the end of each financial year for which you are holding them?
Sorry if my questions seem a little naive to you.
2 Answers
- 7 years agoFavorite Answer
Shares buying and selling on the same day or in short time and treating them as business called Trading. The income if any will be taxed as per slab rates. The income or loss has to be shown in the head "Income From Business or Profession". You have to file your Income Tax Returns in the return form ITR-4 which contains about 23 pages.
The other way is Capital Gains. If you sell the shares with in one year from the date of purchase then it will be called as Short Term Capital Gains. The tax on Short Term Capital Gains are @15% flat rate. If you sell the shares after one year it is called as Long Term Capital Gains. The tax on Long Term Capital Gains are "ZERO" or NIL.
At the end of each financial year you have to file your tax returns. At that time you have separate short term capital gains, long term capital gains and trading. Accordingly you have to calculate the tax.
I advise you not to go for trading. That is buying shares and selling them on the same day. It is called day trading. I have seen many people who did day trading. Almost all the persons lost their money. It is nothing but authorized gambling.
- Anonymous7 years ago
If a person has no knowldge and skills about Forex then it will be very difficult to trade in Forex. But if you use the right software you can make very good profit. The best software is called "autobinary signal". If you aren't a big expert this software is the only way to earn good money in Forex.
