Suppose I bought stock AAA worth Rs. 1000 and sold it for Rs 1100. Then I reinvested this Rs. 1100 on some other stock BBB. Then is Rs. 100 profit I made in stock AAA still taxable?
If the gap between the dates you sold at 1100 and the date you bought at 1000 is more than 1 year (means that you have hold the shares for more than a year), then the profit 100 is not taxable, otherwise it will be taxable.
Thanks. Just to be very clear… even if I hold the second stock for more than a year, I still have to pay taxes on my last profit out of my savings. Right?
Yes you need to pay, even if you hold the second stock for more than 1 year.
Thats what I was afraid of. Thanks for clearing that up.