Long term and Short term Capital gains tax calculation

POSTED BY Pavan Avala ON August 3, 2012 3:33 pm COMMENTS (4)

I work in MNA (which is US based company, registered in NASDAQ).

I have sold ESPP and RSU stocks issued by company using charles schwab and money got transferred to INDIA account.

Profit a raised out of selling these shares comes under capital gains or other income?

I heard that stocks purchased/sold in Indian stock markets by paying STT (security transaction tax) are only allowed to consider for Capital gain/loss. Is this true?
If yes, then profit a raised out of selling ESPP and RSU shares comes under other income?

I have got profit out of ESPP (sold within one year before vesting data) and got loss out of RSU (which I sold one year after vesting data).

How do I use these values for calculating tax?

4 replies on this article “Long term and Short term Capital gains tax calculation”

  1. Suhas says:

    Ok, Even i need to know how these profit/loss or taxed after selling

  2. Suhas says:

    when the ESPP shares were purchased, was there any prerequisite tax deducted?

    1. Pavan Avala says:

      Hi Suhas,

      As you know that each company gives ESPP shares for 15 % discounted price.
      This 15% discount is considered as a income from employer and they calculate tax for it and paid tax for it as “prerequisite” tax. But, company did not pay any tax while selling.


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