There is no tax on dividend.
When you sell any asset you own (house, land, shares, mutual fund units, gold, debentures, bonds), and you make a profit on the sale, it is known as capital gain.
If you sell your shares after a year, the profit you make is referred to as long-term capital gain. There is no tax on long-term capital gain.
If you sell it within a year of buying, it is referred to as short-term capital gain and taxed at 10% of the profit made.
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2 comments:
furkhan,
were the profits frm trading taxed separetly ....
i mean to ask,
arent the profits from trading added to income and then taxed? or were they taxed separately....
Hi Murthy...
See there are two cases...
Case 1:
If ur other income is more than 1 lakh then short term tax on shares will be 10% of ur profit in shares...
Case 2:
If your other income is less than 1 lakh ...say u have an other income of 90000..then 10000 will be deducted from ur short term capital gain and the remaining amount will be taxed at 10%...
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