Asset | Long Term Definition | Long term Tax | Short term Tax | Comments |
---|---|---|---|---|
Stocks | Sold after 1 year from purchase date | 10% of Profit | 15% of Profit | Long Term Tax only applicable if total Long term profit in a financial year exceeds 1 Lakh |
Equity Oriented Mutual Funds (Mutual Funds which invest atleast 65% of their Portfolio in Stocks) | Sold after 1 year from purchase date | 10% of Profit | 15% of Proft | Long Term Tax only applicable if total Long term profit in a financial year exceeds 1 Lakh |
Rest of the Mutual Funds | Sold after 3 years from purchase date | 10% of Profit or 20% of Profit after adjusting for inflation | Profit Taxed at your Applicable Income Tax Rate | - |
Government and Corporate Bonds | Sold after 3 years from purchase date | 10% of Profit or 20% of Profit after adjusting for inflation | Profit Taxed at your Applicable Income Tax Rate | - |
Gold | Sold after 3 years from purchase date | 10% of Profit or 20% of Profit after adjusting for inflation | Profit Taxed at your Applicable Income Tax Rate | - |
Gold ETF | Sold after 3 years from purchase date | 10% of Profit or 20% of Profit after adjusting for inflation | Profit Taxed at your Applicable Income Tax Rate | - |
Property | Sold after 3 years from purchase date | 10% of Profit or 20% of Profit after adjusting for inflation | Profit Taxed at your Applicable Income Tax Rate | Tax is not applicable for long term profit re-invested in approved assets. |
Privately held Stocks | Sold after 3 years from purchase date | 10% of Profit or 20% of Profit after adjusting for inflation | Profit Taxed at your Applicable Income Tax Rate | - |