Is longterm gain in equity is taxable ?

@third.i.financial.advisors

Yes it will be taxable.

Some sort of relief is there for you by applying concept of indexation.

Professional will help you in this regard.

You will get upto 1L exemption for capital gains in equity.

https://groww.in/p/long-term-capital-gain-tax-o...

Long-Term Capital Gains (LTCG) on shares and equity-oriented mutual funds in India are taxed at a 10% rate (plus surcharge and cess) if they reach Rs. 1 lakh in a fiscal year. LTCG is defined as profits on the sale of shares or equity-oriented mutual funds held for more than a year.

Securities other than the ones mentioned in Section 112A are also subject to taxation. The following table demonstrates the nature of a long term capital gain tax on shares in India and other securities.

LTCG on equity @ 10% above Rs 1 lakh.

If you wanna save tax, instead of booking the entire profit this year, book upto Rs 1 lakh this year, and another lakh next year. 

@bobby_123

sell off 25% for this year below 1 lac

Up to 1 Lac LTCG : 0 Tax

1 Lac and above - 10% LTCG

-------------------------------------------------------

Keep doing Tax Loss Harvesting every year to save the max tax. (https://support.zerodha.com/category/console/re...)

Short term 20%

Long term 10%

I too have a query, let's say

I have invested 5 lac in mf from a long period via sip and now i want to withdraw it (after waiting for an year, as the time is calculated from every sip) .

So what will be the best way to avoid/save on taxes.

Shall i withdraw in one shot (offcourse not a good idea) or like 1 lac each year etc etc

- @bikidas2060 @tappukepapa

For those who asking how to calculate Capital gains
Go to CAMS website https://www.camsonline.com/Investors/Statements...

-> Click on Capital Gains Statement -> Enter your email ID/PAN - linked with MF Portfolio

How to do tax harvesting?
Take out your detailed statement from CAMS - Excel preferred ( some funds might not be with CAMS - maybe kfintech or individual MF website but you will surely get them)
-> Check Units you have -> Make SUM total of all gains for each SIP/Lumpsum until your total is 1 Lakh and withdraw and reinvest same number of units [ +/- 2% amount ]

It shouldn't take significant amount of time - I mean you get to save 10k Rs on tax - surely you can invest some time to do this

10k saved on tax now - compounded few years later will be 2x - 5x 

What does long term means actually more than 1 year holding of stocks in equity?

Can anyone tell

Which app should we use, if we want to invest in mutual fund for long term?????

you can settle down if you buy a property, use section 54F

LTCG is applicable even if income is less than 5 lac?

Invest from parents demat to get 2L extra exemption

Another way to save LTCG was to invest in ULIP so as to claim exemption under section 10 (D)

I don't know these are still available after a recent amendment removed exemption to ₹5l and above investments

 ICICI Pru LifeTime Maximiser Growth  was one such fund

Can we set off short term gains against long term loss?

Profit hua toh bhi govt ka fayda nahi hua toh bhi..govt ke dono haath me ladoo

Mehnat karke paise kamao, dimag lagake Darr Darr ke invest karo , profit hua toh govt muft me baithe baithe khayega and badle me humko kya milta hai

How much did you invest? Was it a lumpsum?

I see a lot of people saying withdraw 1 lac year and reinvest or something, to take advantage of the exemption.  The exemption is for the profit.

It doesn't matter how much you invested, the exemption is solely for the profit.

If you had invested 5 lacs and gained 1 lac as a profit(20%).

To get the exemption for the entire 1 lac, you have to withdraw the entire 6 lacs to make the profit tax-free.

If you withdraw only 1 lac, you had only made 20k tax-free. The 80k will still be up for taxation in the future according to law at that time.

So you can withdraw however many units that amounts to a total of 1 lac profit.

If you need funds.

Okay i am a science student (not a expert in finance) .....but Let me explain some basics of finance like a 5yr old ....

Intraday/F&O =(is considered as) Business Income

1️⃣*File Itr 2 bill(4 norml short/long term cptl gain)

2️⃣*If Business income+LTCG/STCG= file Itr 3 or 4

↪️*Igr 3 =(if not selected presemptive then_use detailed p&n, ➡️all expense,etc)Then pay as per tax slab!

↪️*Itr 4 presemptive taxation= if turnover above 1cr but blow 2cr...! Direct 8% or 6% tax only!!!(Not going in detail of net profit here)

Now ➡️➡️LTCG/STCG TAX

🆕LONG TCG {1L gets Exempt}(#>12M)=10% tax

🆕SHORT Term Capital Gain Tx(#<12M)=15% tax

*(Till 2.5L✖️Tax ,But upto 5L get full Rebate so technically ✖️Tax)

If u opt & declare equity holdings as Stock-in-trade then it'll be business income (not LTCG/STCG)

*These r all direct tax, indirect is gst,stt,stamp duty,etc

Book 1 lac profit before March 31st ..it will be tax free and book 1 lac profit on April 1st. But your wish ... Anythg above 1 lac profit which is LTCG (stocks held fr 365 days) will be taxed at 10%

1 lac= this financial year. No tax

1lac= sell next financial year= no tax.

Rest 1.5 lac sold this year or next year= 10% tax

But remember stock market is gamble.. it won't run as per your wish ✅

Zerodha you may utilise tax harvesting option or use tax PL to find wat is the profit booked under LTCG and book atleast 1 lac tax free profit before March 31st . N you can sell and buy next day

I now spend less time in finding offers and more time on money making profits fr me.

Sab kuch Google par mil jata hai..from investment to taxation https://groww.in/p/long-term-capital-gain-tax-o...

There seems to be a general confusion as to how to calculate gains and book profits to take advantage of the ltcg exemption of 1Lac.

Here is a simple calculation,

Date.  Inv. amnt.   Nav.    Altd units

Jan22   50000          10        5000

Feb22   50000          12        4166.666  
Mar22  50000          14        3571.428   


1. First part of calculation is already done.

Altd units x nav = inv. Amnt (150000)

2. Second part needs the current nav of the selling Date. Current nav = 13

Altd units x current nav = current value 

For jan22, 5000 x 13 = 65000

For Feb22, 4166.666 x 13 = 54166.58
For mar22 3571.428 x 13 = 46428.564

You will have to pay 10% tax on net profit..You can reduce all charges spent while investig and redeeming the investment like broker charges, STT, demand charges etc...

Listing gain Profits on ipo are taxable?

Every gain is taxable 😂

Check this site, nicely explained

https://cleartax.in/s/equity-funds-ltcg-ta...on

If I book profit of 90k and no ltcg on that. Do I need to pay tax on 90k as per my tax slab or this amount is tax exempt?