What are the taxes on Stocks?

Investments
,
1

Hey! I’ve recently started investing in stocks, and I’m curious if I sell them, how much tax will I have to pay? Also, is there a difference in tax rates for short-term and long-term holdings?

1 Like
2

Yes, when you sell stocks and make a profit, you have to pay capital gains tax and it depends on how long you held those stocks:
1.) Short Term Capital Tax:

  • If you sell within 1 year, your profit is called short term capital tax.
  • Short-term capital gains are taxable at 20%.

2.) Long Term Capital Tax:

  • If shares are held for more than a year.
  • It is taxed at a 12.5% rate (plus surcharge and cess) if they reach Rs. 1.25 lakh in a fiscal year.