what is a stock?

A stock is also known as an equity, is a security that represents the ownership of the issuing corporation.

Stocks provides ownership in a publicly traded company.

 When you buy a company’s stock, you will become part-owner of that company.

Units of stock are called “shares”.

Capital gains earning on the transfer of shares are to be reported under the head “Income from capital gains”.

Do I need to show my stocks on taxes?

As per the Income-tax Act, 1961, the taxability of gains arising on the sale of shares depends upon several factors such as the period of holding and number of transactions. If the shares are held by the taxpayer for investment purpose, then it would be treated as a capital asset and would be taxable under capital gains.