STCG while trading shares...

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  1. j_srikumar

    j_srikumar New Member

    There is no Capital Gain tax on long term shares held for more than one year. But if we do trading with our Dmat accounts, say buy on a day and sell the shares after a week or month, are we supposed to show the profit in our income? If so under what head?

    I heard that while trading, if we do not take the profits to our bank accounts, and instead reinvest in buying and selling sharers, we need not show the gain earned in our returns. Is that so?
    r s jathar likes this.
  2. Parul_Gupta

    Parul_Gupta Active Member

    Gains on such shares would be regarded as Short Term Capital Gains and would be taxable @ 15% under Section 111A.

    The Income would be reported under Head - Capital Gains. There would be a separate section for disclosing income taxable under Section 111A.

    There is no exemption available from this type of income. Whether you reinvest this amount or not - you would be required to be pay tax @ 15%
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