Easily and cheaply availably of the Board Band Internet connection has encouraged me to go for online trading and forget the broker franchises and do the trading business from my house itself, which has given me lots of freedom which earlier was not available. However for last 3 years, I am doing, trading and for last one year I am doing online trading and following points I read and experienced that one should know about online trading.
- Online transaction of equity are subjected to tax liability .
- All gain from sell/purchase of equity with a year of the of the date of purchase/ sell are subjected to capital gain tax @ 15% along with applicable surcharge and other tax.
- All losses with a year of the date of purchase are subject to set off against capital gain tax.
- If selling of share after holding of more than a year then gains are exempted from capital gain tax and losses are also not eligible to be set off against the gain
- If the total transaction is more than 20 lakh/year then the account need to be audited and treated as business income.