New Delhi:- We all know that we’ve to pay tax on salary, income and business income. Except for this, you’ll also earn bundle from the sale or purchase of shares. Many house wife and retired people make profits by investing in the stock market but they are doing not understand how this profit is taxed.
If there’s a profit on selling the shares listed in the stock market after 12 months, then it’s to be taxed under LTCG. The provision included in the 2018 budget said that if capital gains of over Rs 1 lakh are made on the sale of shares and units of equity mutual funds sold after one year, then it’ll be taxed at 10 percent.
Whether you fall within the 10 per cent slab of tax liability or 20 or 30 percent slab, if you’ve got made short term capital gains, then it’ll be taxed at 15 percent only. If your taxable income is a smaller amount than Rs 2.5 lakh, then the profit earned from selling the shares are going to be adjusted against this so the tax are going to be calculated.
The vendor needs to pay 0.025 percent tax on the sale of shares. This tax is to be paid on the sale price of the shares. This suggests that as per the slab, income up to Rs 2.5 lakh won’t be taxed. Earnings above this may be taxed as per the tax slab.