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Income earned from selling shares is liable to taxation in India. The taxation depends on the nature of shares and the duration of their holding. Shares bought with the intention of trading and held for a short period of time are known as speculative shares. Shares held as an investment and held for a longer period are known as capital gains. Income from speculative shares is taxed as income from other sources. The tax rate applicable is the slab rate applicable to the income earner. It is important to note that the income from speculative shares is treated as business income and is taxed at the slab rate applicable for the financial year. Income from capital gains is taxed differently. The tax on capital gains is determined by the duration for which the shares are held. The tax rate applicable on capital gains depends on the duration for which the shares are held. Shares held for more than 12 months are known as long-term capital gains (LTCG). Shares held for less than 12 months are known as short-term capital gains (STCG). Long-term capital gains are taxed at the rate of 10% without indexation or 20% with indexation. Indexation is the process of adjusting the purchase price of the shares to current market value. This helps to reduce the tax liability on long-term capital gains. Short-term capital gains are taxed at the slab rate applicable to the income earner. Apart from the income tax, there are other taxes applicable on the income earned from selling shares. Securities Transaction Tax (STT) is charged on the sale of equity shares. The rate of STT is 0.1% of the turnover and it is deducted at source by the stock exchange. Apart from the income tax and STT, there are other taxes such as Dividend Distribution Tax (DDT), tax on unlisted shares, etc. which are applicable on the income earned from selling shares. Income from selling shares is subject to taxation in India. It is important to understand the nature of the shares, the duration for which the shares are held, and the applicable tax rates. It is also important to understand the applicability of other taxes such as STT, DDT, tax on unlisted shares, etc. Taxation on income earned from selling shares is governed by the Income Tax Act, 1961. It is important to consult a tax expert to understand the taxation applicable on the income earned from selling shares. This will help to determine the correct tax liability and will ensure compliance with the tax laws. The taxation on income earned from selling shares depends on the nature of the shares, the duration for which the shares are held and the applicable tax rates. Income from speculative shares is taxed as income from other sources and is taxed at the slab rate applicable for the financial year. Income from capital gains is taxed differently. Long-term capital gains are taxed at the rate of 10% without indexation or 20% with indexation. Short-term capital gains are taxed at the slab rate applicable to the income earner. Apart from the income tax, there are other taxes applicable on the income earned from selling shares such as STT, DDT, tax on unlisted shares, etc. It is important to understand the taxation applicable on income earned from selling shares. This will help to determine the correct tax liability and will ensure compliance with the tax laws. It is advisable to consult a tax expert to understand the applicable tax rates and the applicable tax laws. This will help to ensure that the applicable taxes are paid on time and will also help to save costs by taking advantage of the applicable tax exemptions.