• Short term capital gains tax: If the holding period of the stock is not more than 12 months, then the gains attract a tax rate of 15%.
  • Long term capital gains tax: If the holding period of the stock is more than 12 months, then the gains do not attract any tax.
  • Further, any short term losses can be carried forward for a period of 8 years only if you declare the same in your Income Tax returns before the due date.
  • Derivatives taxation is charged at business tax rates.
  • Losses in stocks held for more than 12 months cannot be off-settled against short term profits.

* Original link

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