Taxation of gains from equity shares

Types of Capital Gains on Shares

It is Classified under 2 types

• Long term capital gain
• Short term capital gain

These Classification is depending upon the Period of Holding –

Taxation Listed Equity Shares of Short Term Capital Gain(STCG)

Short-term capital gains are taxable at 15% if the sale occured before 23rd July, 2024.

After 23rd July, 2024 rate has been changed to 20%.

Taxation of Listed Equity Shares – Long-Term Capital Gains (LTCG)

If listed equity shares are sold before July 23, 2024, any long-term capital gains exceeding ₹1.25 lakh will be taxed at 10% (plus applicable cess). Indexation benefit will not be available on such gains.

If the shares are sold on or after 23rd July 2024, the gains are taxed at 12.5 % without indexation, after an exemption of Rs. 1.25 lakhs.

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