Share Trading Plan
An investor in the stock market may be engaged in different types of trading such as equity delivery- based trades, mutual funds or F&O trading. The Indian Tax Law prescribes different tax treatments for different types of investments in the stock market. In case of NRIs, the bank at the time of disbursing the trade proceeds, deduct tax (TDS). Where TDS has been so deducted on your income from shares, NRIs can submit the tax returns in India to claim the excess TDS amount as refund and to claim capital loss on share trade.
- Profit or loss on trading in shares / mutual funds on a recognized stock exchange.
- Profit or loss on sale of unlisted shares (Private Limited Company Shares).
- Dividend income.
- Interest from savings bank accounts and fixed deposits in India.
Incomes Covered in the Plan
- Fair market valuation of unlisted shares.
- CA certification and Tax Audit.