Securities Transaction Tax (STT) is a tax being levied on all transactions done on the stock exchanges.Securities Transaction Tax is applicable on purchase or sale of equity shares, derivatives, equity oriented funds and equity oriented Mutual Funds.
Current STT on purchase or sell of an equity share is 0.075%.
When you have paid security transaction tax at the time of selling securities (shares), then,
If you are an investor and not trader:
1. If you are selling the shares after 12 months, then it comes under long term capital gains and you need not have to pay any tax on that gain.
2. If you are selling the shares before 12 months then you have to pay short term capital gains @10% flat on the gain.
If you are a trader and not an investor:
All your gains will be treated as trading (Business) and you have to pay tax as per tax sables. In this case the transaction tax paid by you can be claimed back/adjusted in tax to be paid.
Related posts:
- At What Rates Capital Gains is Taxed?
- Mutual Fund And Tax Benefit
- Capital Gains from transfer of shares held by Mauritian company not taxable in India
- Vodafone International vs. UOI (Bombay High Court)
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well i have also a blog on share trading and money making i loved your blog content though stt now has changed please post some info on difference between and investor and the trader and how they are taxed.
PLEASE ADVISE THE CURRENT RATE OF SECURITY TRANSACTION TAX ON EQUITY AS WELL AS FUTURE/OPTION TRADE IN STOCK MARKET
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