Tax on Income earned from Share Market
The share market can be a profitable investment option for many. In India aside from salaries rental income, the business earnings, one could make money from the purchase or sale of shares. The earnings through the stock market are often referred to by the name of Capital Gain and you have to record it on your ITR Filing by December 31 every year. Through this post, you'll be able to understand the concept of tax on income that is earned through Share Market. What is Capital Gain? In the market for shares, Capital Gain is income that you get from selling securities. As an example, say you sell one stock of the company ABC Limited for Rs100 which you purchased for just 80 rupees. You have received Rs20 as your capital gain. In simple terms, it's the price difference between cost price and selling price. What is Capital Loss? Capital Loss is when the cost of selling an asset is lower than the cost of one's asset i.e. shares, bonds etc. What are the different types of Capit...