Long-Term Capital Gains Tax
Tax Implications for Investors
Exemption and Tax Rates
Long-term capital gains (LTCG) on the sale of listed equity shares over Rs. 1 lakh per financial year are subject to a tax rate of 10%. LTCG up to Rs. 1 lakh in a financial year is exempt from tax.
Tax-Saving Strategies
Investors can legitimately save on LTCG tax by engaging in specific investments or activities outlined in the Income Tax Act.
Tax on Long-Term Capital Gains
In India, profits from the sale of assets held for more than 24 months are subject to LTCG tax. The tax rate is 20.8% of the profit after indexation of cost. Alternatively, investors can opt to pay tax at 10% without indexation.
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