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Capitan Gain

Short term capital gain (STCG)

  • If you buy & hold the shares for less than 1 year, and earn a profit after selling the share, it is known as STCG
  • Rate of Tax is 15% on profit for STCG

Long term capital gain (LTCG)

  • If you buy & hold the shares for more than 1 year, and earn a profit after selling the share, it is known as LTCG
  • 10% Tax on profit if it's over Rs 1 lakh irrespective of Tax-slab
  • The Union Budget 2018 proposed to levy long-term capital gains tax (LTCG) of 10 percent on gains exceeding Rs 100,000 from the sale of equity shares.

Tax on different type of MF

  • Equity
* LTCG: Hold > 1 yrs
  * Upto 1L  --> 0
  * Above 1L -->  @10% in FY

* STCG: 1 day < Hold < 1ys
  * @15% + cess on tax

* Intraday Gain
  * Speculative Business income
  * Taxation according to your tax-slab
  • Debt Funds
* LTCG: Hold > 3 yr
  * 20% after indexation

* STCG:
  * Taxation according to tax-slab
  * Very bad for high tax-slab

Reference