Capital Gains

[beeghu]

I have question... pls help.

If i brought shares for the value of 8000 and selling it for 10,000 on Short Term basis. So my profit is 2,000 (10,000-8,000).

Now pleases clarify me, how much i have to pay for Capital Gain Tax.


Is it 10% of total value of Sales (10,000) ie, 1,000

or

10% of profit 2,000 (10,000 - 8000), ie 200

 

[masterjee]

Capital gains is on gains 10% of 2000 = 200

m

 

[beeghu]

Capital gains is on gains 10% of 2000 = 200

m

Thanks for your quick response.

 

[sundara03]

Capital gain calculation of stock market is different from house property. If you buy any stock should be sold after one year to avail capital gain benefits. You will not pay any tax on the same. If you are selling in less than one year then you have to pay 10% short term capital gain on your profit.
In case of Property sell you have to invest the same in another property within three years time to get the capital gain benefits.

If one incurrs loss in long term capital gains, that is in shares sold after one year of purchase, are there any provisions to set this off

Sundar

 

[pkjha30]

If one incurrs loss in long term capital gains, that is in shares sold after one year of purchase, are there any provisions to set this off

Sundar

Long term loss is set off against long term gains. You can show this in income tax returns. gains should be treated as investment gains and not as business income to avail this benefit.

pankaj

 

[chincho]

I have a query.. in case of short term capital gains tax... if within a year i make a profit of 10000 by selling shares of a particular company and a loss of 2000 by selling the shares of another then the tax will be on 10000 or 10000-2000=8000 ???? thanx in advance...

 

[ranj_2k]

It should be on Rs.8000. Short term capital will be Rs.800.

 

[lalpar]

It should be on Rs.8000. Short term capital will be Rs.800.

Suppose u make a profit of 50k in equity trading and made a loss of 50k in futures.What will be the tax?

 

[shravank30]

If you are showing both Equity trades and Derivative trades as business income, then they can be set off against each other.
But if you are availing the 10% lower income tax slab as investor for Equity then you cannot set off the derivative profit against the Equity loss

 

[trekker]

how is the cost of share calculated?
price+brokerage+stt?
or any other dedudction?
thx