Business

If you have earned income from the stock market then you will have to pay tax, if you know then you will benefit

Share Market: If you have the intention of investing in the stock market, then definitely do so, but before that, definitely get all the information related to the stock market. If you want to invest in the stock market, then do not just think about earning more and more. Rather, get information about how much tax has to be paid on the earnings from the stock market. We are telling you how much tax is levied on the earnings from the stock market and how.

intra-day trading

  • Intra-day trading is the buying and selling of shares on the same day by the evening of the same day.
  • The income earned from intra-day trading is called speculative business income.
  • Earnings from futures and options trading are called non-speculative business income.

how much tax will have to be paid

  • Earnings from intra-day and futures-option trading are taxed as per the tax slab.
  • No tax will be payable on total income up to Rs 5 lakh.
  • Earnings above this will be taxed as per the tax slab.

short term capital gain

  • If you buy shares for less than 1 year and more than 1 day, then the earnings from this are called short term capital gains.
  • You have to pay flat 15% tax on short term capital gains.
  • No tax will have to be paid if the total income is up to Rs 5 lakh.
  • It does not matter which tax slab you fall in.

long term capital gain

  • If you buy shares for a period of more than 1 year, then the profit earned from selling them after 1 year is called Long Term Capital Gain.
  • There is no tax on long term capital gains earning up to Rs 1 lakh.
  • Earning more than this attracts a tax of flat 10 per cent. It doesn’t matter which tax slab you fall in.
  • If your total income is up to Rs 5 lakh, then you do not have to pay any tax.

Disclaimer: (The information provided here is for informational purposes only. It is important to mention here that investing in the market is subject to market risks. Always consult an expert before investing money as an investor. Anyone from ABPLive.com Also investing money is never advised here.)

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Shivam Bangwal

Shivam Bangwal is a young entrepreneur who hails from Uttarakhand. Shivam is a professional full time Digital Marketing and PR expert with a post graduation degree of Master's of Computer Applications. He is a founder of Youthistaan, People News Chronicle, Branding Panther and Digital Leader.

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