- 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.