3

I am planning to sell all my stock and have all my money transferred to my own savings bank account. What is my tax liability?

4

If you have held the stocks longer than a year, then there is no tax apart from the STT that is already deducted when you sell the shares.

If you have held the stock for less than a year, you would have to pay short term capital gains at the rate of 15% on the profit.

Edit:

If you buy different shares from the total amount or profits, it makes no difference to taxes.

  • Isn't the rate of tax on short term capital gain 15%, unless that has changed for the AY 2015-16? – Bijo Thomas May 25 '15 at 5:07
  • @BijoThomas Thanks. You are right its 15%. Updated the answer. Mixed it with something else :) – Dheer May 25 '15 at 6:34
  • so will i have to pay income tax over it ? suppose my yearly salary is 5,00,00 and i earn 20,000 (out of which 10000 is my profit) in stocks after holding them for 13 months, so my total income is 520000. According to indian tax code anything above 250000 is liable for being taxed so will i have to pay for 5,20,000-2,50,000= 2,70,000.Is my taxable income 2,70,000 and if it not how much is my taxable income then ? – Subham Tripathi May 25 '15 at 9:05
  • Your profit is Rs10,000/- and tax if any will be on Rs 10,000. As you have held these stocks for more than 1 year, there is no tax. You would have to pay tax on Rs 5,00,000 as per the slab, i.e. NIL for 2,50,000 and 10% for next. – Dheer May 25 '15 at 9:29
  • What if I reinvested the amount in other shares (intra day trading etc?) – letterhead May 26 '15 at 16:59

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