I have purchased above 600,000 rupees stocks from different company through NSE/BSE exchange.I have a trading account with canara bank(sb), i deposited rupees 6 Lacks this year & purchased almost same amount of stocks throughout the year.I have no Idea about the income tax i have to pay or the tax already deducted when i purchase the share.I used to buy/sell shares on long term,short term also intraday bbasis.kindly guide me regards the tax payment.
As mentioned by Dilip, you need to provide more details.
In general for transacting on stocks;
Long Term: If you hold the stock for more than one year then its long term and not taxable. There is a STT [Securities Transaction Tax] that is already deducted/paid during buying and selling of a stock.
Short Term: If you hold the stock for less than one year, it's short term gain. This can be adjusted against the short term loss for the financial year. The tax rate is 10%.
Day Trading: Is same as short term from tax point of view. Unless you are doing it as a full time business.
If you have purchased multiple quantities of same stock in different quantities and time, then when you selling you have to arrive at profit or loss on FIFO basis, ie First in First Out
No Tax would have been deducted at the time of purchase/sale of shares.
You would yourself be required to compute your tax liability and then pay taxes to the govt.
In case the shares sold were held for less than 1 year - 15% tax on capital gains would be levied. In case the shares sold were held for more than 1 year - No Tax would be levied and the income earned would be tax free.
PS: No Tax is levied at the time of purchase of shares and Tax is only applicable at the time of sale of shares.