How To Pay Tax On The Earning Of Stocks??

[vasa1]

.....
what is more interesting is one can have multiple books ie he can be trader, short term investor and long term investor ,provided he maintaines all the 3 books separately.
The important advantage is that a trader can use LIFO(last in first out),FIFO(First in First OUT) methods to do trading while investor can use only FIFO.

Hi Mahesh, two questions re. your post...

1. Could you explain the 3 categories: trader, short term investor, & long term investor from a taxation point of view?

I can understand the first and last but not the middle category.

2. Could you give some reference for the LIFO versus FIFO? This is the first time I've come across the LIFO option.

 

[rohangawale]

Hi Mahesh, two questions re. your post...

1. Could you explain the 3 categories: trader, short term investor, & long term investor from a taxation point of view?

I can understand the first and last but not the middle category.

trader: for 1 day
short term investor is one who invest for more than one day and less than a year.
long term investor is for more than 1 year

 

[diosys]

trader: for 1 day
short term investor is one who invest for more than one day and less than a year.
long term investor is for more than 1 year

I would not agree with this.....

You can be a long term investor even if you traded stocks.... !!!

Similarly you can still be a trader even if held the stock for 10-15 days....

Actually it is not the days with which it should be seen....it is the INTENT of the purchase which is very critical...

 

[jayakumargss]

Hi,pls clarify the taxes?

Case-I
lets say I have 25,000/- income on sale of shares below 1 year period?
so do i need to pay a tax?

Case-II
lets say I have 25,000/- income on sale of shares,Shares held for less than 1 year
so do i need to pay a tax?

If we have to pay tax for that so what % do we have to pay?

pls clarify the above 2-cases?

thansk in advance

 

[king_flay21]

and there is no Reply

 

[ajmer66]

I would not agree with this.....

You can be a long term investor even if you traded stocks.... !!!

Similarly you can still be a trader even if held the stock for 10-15 days....

Actually it is not the days with which it should be seen....it is the INTENT of the purchase which is very critical...

Can some one clarify how to ascertian INTENTION . For me share trading on delivery basis is for investment irrespecive of volume of transactions but Inxome tax deparment may treat this as business .If some one is doing on online share transaction for Rs 50 Lakhs with investment/captal of Rs 10 Lakhs in a year and pays income tax as applicable for short term and long term capital gains. Will this be accepted by Income tax deparment.?.

 

[Nishit_]

I would not agree with this.....

You can be a long term investor even if you traded stocks.... !!!

Similarly you can still be a trader even if held the stock for 10-15 days....

Actually it is not the days with which it should be seen....it is the INTENT of the purchase which is very critical...

Hello,

I agree with your statement that "it is the INTENT of the purchase" but I wanna to ask who will decide this ? CA/Myself. ? Is there any conditions for this. I trade in nifty future I earned money by holding positions for 4-5 days sometimes more than 30 days how can I define it is short term capital gain or bussiness trading gain?

Regards,
Nishit.

 

[Navj29]

I am a 82% physically disable person. My only source of income is online share trading. Can i receive tax benefits on short term capital gain? If yes, how?

 

[Frankken]

How can we deduct loss from the profit and we can pay the tax on the other profit.:clapping:

 

[briankim09]

There are 2 sets of rates.

1. Short Term Captial Gains
2. Long Term Capital Gains Taxes

Short term capital gains taxes are on stocks that have been held less than one year before selling.

Long time term capital gains taxes are on stocks that have been held more than one year before selling.

Long term capital gains taxes are less than short term capital gains taxes.
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