Calculating tax on Capital Gain
September 16, 2012 8:31am CST
I invest for short-term in share market (i.e.,sell the shares as soon as it reaches a certain value). But I don't know how to calulate Capital Gain tax. I have the following questions : 1)When calculating tax for a certain financial year, do I have to consider the overall investment & return on share(both sold & unsold), or only those shares which I have sold ? 2)Can I deduct various charges like BSE/NSE Txn Chgarges,STT,Service Charge,Stamp Duty while calculating tax ?
• Cambridge, England
16 Sep 12
This depends very much on what country you are in. Tax laws vary from country to country and the best place to look for this information is your Tax Authorities website. Capital Gains tax is generally charged on the profit made over the year, not on the investment itself. If you haven't sold shares for a profit, you should not be charged tax on them. If you are selling and re-investing, the situation becomes more complicated and you would be well advised to see an accountant who is familiar with your tax system.