Every income is taxable if it is above the basic exemption limit. This applies to income from equity and stock trading as well. Here’s a quick guide for understanding how such income is taxed.

Every income is taxable if it is above the basic exemption limit. This applies to income from equity and stock trading as well. Here’s a quick guide for understanding how such income is taxed.

Gains from sale of equity is considered to be capital gains, which is taxable under the Income Tax Act as capital gains.

Gains from sale of equity is considered to be capital gains, which is taxable under the Income Tax Act as capital gains.

Securities Transaction Tax (STT) is applicable to all taxable securities transactions.

Securities Transaction Tax (STT) is applicable to all taxable securities transactions. 

Income Tax will be chargeable either on business income or on capital gains.

Income Tax will be chargeable either on business income or on capital gains.

STT is not a tax on income, rather a transaction tax leviable under separate entry of the Constitution.

STT is not a tax on income, rather a transaction tax leviable under separate entry of the Constitution.

Sale/ purchase of equity does not attract GST as it is levied on the supply of goods and services.

Sale/ purchase of equity does not attract GST as it is levied on the supply of goods and services. 

Securities have been excluded from the definition of both goods and services for the purpose of GST laws.

Securities have been excluded from the definition of both goods and services for the purpose of GST laws.