Dear sir I mandularavikumar investing only in cash market particularly using delivery segment .My whole investment is about 6 lakh and return on these will be approximately 1lakh to 2 lakhs annually some stocks are long term and the other are medium to short term , can you explain the taxing on the gains from the tax department
can you explain the taxing on the gains from the tax department
1.If you exit your positions/holdings within 12 months, a 20% tax will be levied on your profit. This is known as Short-Term Capital Gains (STCG) tax
For example,
- Invested Amount: ₹1,00,000
- Sold at: ₹1,20,000
- Profit: ₹20,000
- Tax = 20% of ₹20,000 = ₹4,000
In STCG, there is no exception
- If you exit your positions/holdings after 12 months, a 12.5% tax will be levied on the profit exceeding ₹1.25 lakh. This is known as Long-Term Capital Gains (LTCG) tax
- Invested Amount: ₹1,00,000
- Sold at: ₹1,20,000
- Profit: ₹20,000
Here, the profit is below the 1.25 lakhs, hence no tax has to be paid