What are the Capital Gain tax implications of selling shares and stocks?
Curious about Capital Gain
In India, the tax implications of selling shares and stocks (equityoriented securities) are as follows:
1. ShortTerm Capital Gains (STCG): If you hold shares or stocks for a period of up to 12 months, any gains from the sale of those securities are considered shortterm capital gains (STCG). STCG on equity shares and equityoriented mutual funds are taxed at a flat rate of 15%.
2. LongTerm Capital Gains (LTCG): If you hold shares or stocks for a period of more than 12 months, any gains from the sale of those securities are considered longterm capital gains (LTCG). LTCG on equity shares and equityoriented mutual funds up to Rs. 1 lakh in a financial year are currently exempt from tax. LTCG exceeding Rs. 1 lakh are taxed at a flat rate of 10% without the benefit of indexation.
It's important to note that these tax rates are applicable to equity shares and equityoriented securities. Different tax rates may apply to other types of securities such as debt instruments or bonds.
Additionally, the Securities Transaction Tax (STT) is levied on the purchase and sale of equity shares and equityoriented mutual funds. The STT is calculated as a percentage of the transaction value and is paid by the seller of the securities.
Please keep in mind that tax regulations and rates may be subject to change, and it's always advisable to consult a tax professional or refer to the latest tax guidelines issued by the tax authorities in your country for accurate and uptodate information regarding the tax implications of selling shares and stocks.