I have a demat a/c and purchased shares for 4000. How to show share purchase as investment for tax benefit?

Question

Can anyone suggest how to show the share purchase as investment for tax benefit. Is it possibile to show it for exemption. Pls clarify.

Answer 1

Best Answer - Chosen by Voters

There is no need to show the shares purchased by you and its price as long as you have not sold them. After selling them if you make any profit or loss then that should be shown in your income tax returns and pay tax if any.

If the shares are sold after 12 months of purchase, then there is no tax to be paid (Long Term Capital Gains). If the holding period is less than 12 months (short term capital gains), then the tax will be 15%.

Answer 2

Who told you that purchase of shares as investment qualify for tax benefit?

The only indirect investment in the stock market thru ELSS of MFs qualify for exemption u/s 80C.

LTCGs from investment in shares are tax free.

STCGs from investment in shares are taxed @ 15%.

HMT

Answer 3

Dude, as far as I know and I am trading for more almost 3 yrs now, you can't show investment in shares to get tax benifit. Its simple - u r investing to earn money - why shud govt give u exemption from tax? In fact, all income from shares shud be shown as 'Income from other sources' :-)

Answer 4

You can ask the stock broker from whom you purchased the stocks. You cannot claim for any tax benefits for the amount you have spent for purchasing the stocks.