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Asked a question 2 years ago

What are the various taxes applicable to investors?

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Hey @Jayesh Mishra35, It's a long list. Traders pay out a lot of taxes as mentioned below. 

  1. Securities Transactions Tax (STT): Applicable when you trade stocks, ETFs, F&O. STT paid can be set off against taxable income.
  2. Commodity Transactions Tax (CTT): Applicable when you trade commodity F&O.
  3. Goods & Services Tax (GST): GST is levied on brokerage and other fees paid to intermediaries.
  4. Stamp Duty: Uniform stamp duty is applicable at 0.002% of turnover across all states in India.
  5. Short Capital Gains Tax (STCG): If you sell your shares within 1 year and earned a profit from it, it will be taxed at 15%. STCG can be set off against STCL and LTCL and can be carried forward for 8 years.
  6. Long Term Capital Gains Tax (LTCG): Gains beyond 1 lac made on investment beyond a holding period of 1 year and above are taxed at 10%. Losses can only be set off against LTCG and not STCG.
  7. Income Tax: Trading Profits are taxed as per your tax slab. However, if you make losses, you can't write it off against other income, you can only carry it forward and write it off against future speculative gains.

Hope this helps.