I need to trade my Equity Shares. How much is the tax I need to pay on capital gains ?

Question

I have collectively held the Equity Shares of different Companies in question, for between seven to niniteen years.

Some of the shares are bonus issues and some are debentures converted into Equity Shares.

I sincerely hope that these additional details will help you provide me elaborate details on the structure of taxations.

Thanks and best regards.

Answer 1

Your shares are long term. If these are traded on recognised stock exchange, i.e. securities transaction tax is paid on the sale transaction, then there is zero tax. If that is not the case, then tax is 10% if you do not opt for inflation indexing and 20% if you opt for inflation indexing.

Answer 2

10% on short term capital gains (if u held shares for less than 3 years) in the case u hold the shares for more than 3 years then u have to look at inflation chart and make a price as on today according to the inflation table and then income is taxable at 30%

Answer 3

long term capital gain is applying in ur case...
if shares and security held for more than 1yr than long term capital gain is apply.for the share purchase after 1-4-2003 than tax payable will be nil.and in other case tax is counted as index number wise. long term capital gain tax rate is 20%.