What are the applicable tax rates?
The Investment in equity shares is considered capital assets and income there from is computed as “Income from Capital Gain” for Indian taxation purpose. If shares are held for less then 12 months. The gain arising on sale is considered as short term capital gain “Applicable rate of tax is 15.45%” If the shares are held for more than 12 months, the gain arising on sale is considered as long term capital gain. There is no tax payable in case of long term capital gain if shares are sold on recognized stock exchange.
