What are the tax implications on income received from investments in shares in India?

Equity shares are treated as short-term capital assets if they have been held for less than 365 days. The shares held for more than 365 days then they qualify as long-term capital assets.
Dividend Income
Dividend income received by virtue of holding Indian company shares is not taxable in the hands of the shareholders.

Long Term Capital Gain:
Gains arising from the sale of shares which are held for more than 365 days, would be classified as long-term capital gains and taxed at the rate of 10 % to income-tax.

Short Term Capital Gain:
Gains arising from the sale of shares which are held for less than 365 days, would be classified as long-term capital gains and taxed at the rate of 15 % to income-tax.