how much i should pay tax for buying shares

Making money from Indian stock market was never so simple. Even though markets are in the upswing we can find more and more people losing in stocks. A close study shows non understanding of financial markets as the major reason for this. Fundamental study helps you to identify potential winners which can be multi-baggers. Technical analysis helps to time the markets. But there is one more important factor that affects the profits of your investments that is Tax. In this article we have briefly explained different types of Taxes that influences your Returns.
There are thousands of companies in India all of them require capital for functioning and they issue securities to get funds.

Securities Transaction Tax (STT)
Securities Transaction Tax (STT) is a tax on the evalue of shares bought and sold on a stock exchange. The Tax has to be paid irrespective of your profit or loss; it is a turnover based tax. STT has been introduced in the in the year 2004-05. It is levied on the purchase or sale of equity shares, derivatives, equity-oriented funds and equity-oriented mutual funds.

The current rate of STT is 0.125% of the transaction volume

Capital Gain Tax
A Capital Gain can be any income generated by selling a capital investment. A capital investment can be anything like stocks, business, paintings, houses, family businesses, farmhouses, etc.

Tax on Short term and Long term Capital Gains
Capital Gain
Tax Rate
Short-Term

15%
Long-Term
Nil