Tuesday, 17 April 2018

Taxes on your Investment Profits

The year 2018 has been not so great so far for share market traders with the budget session declaring 10-20% tax on your long-term capital gains through financial market. A trader has to pay the taxation under the norms of the finance ministry of India if he gains any profit on the asset he’d be selling after over a year.

Any income from buying and selling shares even if more than a year is considered as a business income. This gets added to your income and then taxes paid according to the above-mentioned slabs. But since it is a business income you can show expenses in terms of Internet, advisory charges etc, any charge that you have incurred for the business of trading and reduce your income liable to be taxed

Even in commodities, you have to pay taxes, varying 15-20% of your profit. Commodity tips providers have suggested investing for short term and the tax slab could be reduced if you are trading with mcx gold tips. The diversification of portfolio will be a great method to reduce the extra levy on your investments. This will help to make you net profit efficient.
Even on short-term taxes, with your profit exceeding 2-5 Lacs INR, you’d have to pay the tax up to 20%. All of your income through the share market trading is considered as the business income and hence you are eligible for taxes on most of your share trading earnings.

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