Taxes on Investments in brief

 

Asset Class

Holding Period

Type of Gain

Tax Rate

Set Off of Losses

Equity ( Stock, Mutual Funds etc)

>1 Year

Long Term Capital Gain ( LTCG)

10% on

Gain > 1 Lac.  No idexation benefit

LTCG can set off against LTCG only.  Carryforward possible up to 8 years

<1Year

Short Term Capital Gain ( STCG)

15% on Gain

STCG can be set off against STCG and LTCG.  Carryforward possible up to 8 years

 

 

 

 

 

Non Equity ( Debt Funds, Gold MF, Hybrid Debt Fund etc)

>3Years

Long Term Capital Gain ( LTCG)

20% on Gain with indexation Benefit

LTCG can set off against LTCG only.  Carryforward possible up to 8 years

<3Years

Short Term Capital Gain ( STCG)

As per individual slabs

STCG can be set off against STCG and LTCG.  Carryforward possible up to 8 years

 

Comments

  1. suveeraSeptember 7, 2022 at 1:09 AM

    Taxes on capital gains from the sale of assets held for a short time are called short-term capital gains / STCG
    .

    ReplyDelete
  2. Anand T VDecember 31, 2022 at 8:49 AM

    Gain out of sale of asset held for a short term is called STCG. Not the Taxes. Taxes will be more on Short term gain than the long term gain

    ReplyDelete

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