Finance, Forex and Investments

i had profit of 50k last year in shares but i reinvested dat money in shares, do i still need to pay capital g

I have invested 200,000 in share market/securities, last year i had profit of 50,000 in shares but i reinvested dat money in shares, do i still need to pay capital gain tax for that money? am an indian, need clarification according to indian law

Public Comments

1. any sales of any investment you need to pay capital gains tax on it unless you have a corporation and you can show that its a business and you are able to deduct expenses to reduce the capital gains. like if you used a computer, internet service that you pay- then you can use those expense to pay for it even rent cause you were using a specific room to trade.
2. Please prepare a statement of the name of the scrip, date of purchase, amount paid including brokerage, date of sale amount received net of brokerage, securities transaction tax and work out the gain or loss in each transaction for the relevant year. You will be able to find out how much profit was made from shares which were held for a period longer than 365 days. These profits are termed 'long term capital gains' and therefore have been exempted from tax under the Income Tax Act, 1961. You will also be in a position to find out how much gain was made on shares which were held for a period less than 1 year or 365 days. These are termed 'short term capital gains'. For the financial year that ended on 31st March, 2007, you will be called upon to pay 10.20% of the net gains as STCG tax. (I presume you will have other incomes too.)