Most of the trader are facing a giant unsolved problem of paying a huge amount of tax as short term capital gain.
Capital gain tax arise on any gain made on buy & sell of stocks , property etc. If the transaction of buy & sll is done within a period of 12 months it is titled as short term capital gain , while transaction for more than 12 months is long term capital gain.
As per last union budget tax on long term capital gain is nil while short term capital gain tax is 10%.
Most of the day traders , short term traders when assess there balance sheet at end of the financial year , a large part of there earning goes in payment of tax on short term capital gain.
If you are stuck in the same problem , you can solve by not paying a single penny as tax . The procedure disclosed is cent percent legal and is called tax planning but not tax evasion.
FOR PROPERTY SECTION
If the short term profit earned on property is reinvested in other property within 6 months then no tax is payable for that financial year for short term gain.
FOR STOCK TRANSACTION
The amount of profit earned as short term capital gain on stock is reinvested in NABARD BOND of Govt. of India for 3 year lock in period with fix interest rate (1% less then normal fixed deposit rate) will tax free. and also after 3 years the total maturity amount from NABARD BOND is also have no tax laiblity.