What is your "CAPITAL GAINS" from equity this year?

Capital Gains Taxes in Equity transactions.

• Short term capital gains tax: If the holding period of the stock is less than 12 months -  then the gains attract a tax rate of 15%.

·         Long term capital gains tax: If the holding period of the stock is more than 12 months  - then the gains do not attract any tax (this might change after 2012 March).

Look at this example to understand it better:

Miss. Vijetha has purchased shares of company A and B on April 11, 2010 for a total price of `1,00,000 each. As on February 20, 2011, value of her investments is as follows:

In stock A, Miss. Vijetha has profit of `30,000 and in stock B, Miss. Vijetha has a loss of `50,000. Now she has the following 4 options to choose from taxation perspective:

Scenario		Outcome
Scenario 1	She can hold both stocks for more than 12 months (either expecting good profit or to get exempt from capital gains tax)	No long term capital gains tax
Scenario 2	She can book profit in stock A and hold stock B which is in loss	On the profit position in stock A she pays short term capital gains tax of 15%
Scenario 3	She can sell stock A - book profits and Sell stock B - book losses	Profit of `30,000 in stock A - Loss of `50,000 in stock B = Net Loss of `20,00. This loss can be carried forward for next 8 financial years. Short term capital gain tax is NIL since she is in loss.
Scenario 4	Hold stock A for more than 12 months and Book losses in stock B	No long term capital gains tax in stock A and short term capital loss of ` 50,000. This loss of `50,000 can be carried forward for next 8 financial years.

Take a look at all the stocks you have purchased & sold in a financial year and calculate the capital gains/loss incurred.