Kerala Banking

What is Capital Gains Tax?

Long Term Capital Assets

Stocks can be considered as Long-term Capital assets when held for more than 12 months by the assessee. If it is helf for 12 months or less than that, then it will be considered as short-term assets. All short-term capital gains are taxable like other income. It means, that they will be added together with the income from other sources to attain a gross taxable income. In India Long-term Capital gains tax has been removed, the short-term capital gains is 10 percent.

 

Tax on Dividends

Dividend income is now completely Tax Free for the investor. This was abolished in 2003 budget.


Wealth Tax

Stocks, Bank deposits and other specific financial assets are fully exempted from Wealth Tax.

 

Tax on Bonus Shares & Rights Issue

The Bonus shares are not subject to Tax, when issued. Rights issue Shares and Bonus shares are taxable, if profit is made from them (by selling these shares).

 

Related Topics

What is a Share or Stock?
What is Face Value of a Share?
What is the Risk of Investing in Shares?
How to become a Successful Investor?
Guide for Stock Trading in India NSE & BSE ( NIFTY & SENSEX )
Basics for Online Trading in India
What are Bonus Shares?
What is Rights Issue of a Share?
Indian Online Stock Market Trading
Market Timing of Indian Stock Markets
Online Banking & Online Investments in India
Online Trading Brokers in India
DEMAT Shares : Shares in Electronic Format
How to Pick Profitable Stocks?
What Is Capital Gains Tax?
Market Trading Hours
Pre-Open Trade
Indian Stock Market Holidays
What is Put & Call?
What is STT?

 

 

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