Taxation for listed equity shares: 5 things to know

1.A securities transaction tax of 0.1% is levied on buy and sell transactions for equity delivery transactions.
2.A securities transaction tax of 0.025% is levied on the sell side for equity intraday transactions.
3.The dividends declared by companies are taxed at marginal rate of tax for the investor.
4.The capital gains at the time of sale of equity shares are taxed at 20% if the holding period is less than a year.
5.Capital gains of more than Rs.1.25 lakh at the time of sale of equity shares are taxed at 12.5%, if the holding period is more than a year.

Content courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.


(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com)