💰 Tax on Share Market
Part of Complete Stock Market Learning Series
📌 Do You Have to Pay Tax on Share Market?
Yes. Profit earned from buying and selling shares is taxable under Capital Gains Tax. The tax depends on how long you hold the shares.
📊 Types of Capital Gains
- Short-Term Capital Gain (STCG) – If shares are sold within 1 year.
- Long-Term Capital Gain (LTCG) – If shares are held for more than 1 year.
💸 Tax Rates on Equity Shares
- STCG – 15% tax on profit.
- LTCG – 10% tax on profit exceeding ₹1 lakh in a financial year.
These rates apply when Securities Transaction Tax (STT) is paid.
📈 Tax on Intraday Trading
Intraday trading profits are treated as business income, not capital gains.
- Taxed as per your income tax slab.
- Losses can be set off against business income.
📑 Other Tax Considerations
- Dividend income is taxable as per income slab.
- Losses can be carried forward for up to 8 years.
- Proper record keeping is important.
- Advance tax may apply for active traders.
💡 How to Save Tax Legally?
- Hold investments for more than 1 year when possible.
- Use tax-loss harvesting strategy.
- Maintain proper trading records.
- Consult a tax professional for business trading.
⚖ Important Note
Tax rules may change as per government regulations. Always verify latest tax rates before filing returns. This content is for educational purposes only and not tax advice.
🚀 Trade Smart, Plan Taxes Smart
Understanding taxation helps you calculate real profits after costs. Learn complete stock market concepts with practical financial knowledge.
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