I have started investment along with trading too. But i’m much not aware with tax, i.e how much one should have to pay if returns exceeds.
How much tax i have to pay if i’m doing investment, mutual funds, stocks, trading ? Is there any specific amount i.e if exceeds above 40k then 10% or something similar. Can anybody answer this question?
OKay let me go through it. Thanks for Sharing
Hey @Rishi_Bawankule,
Taxes on various investments differ based on the type of investment that you make. In the case of equity stocks and mutual funds, your profits are taxable and the tax rate depends on the holding period. If the holding period is more than 12 months, the gains are classified as long term and taxed at 10% and you also get an exemption of ₹1L. However, if the holding period is short term, the gains will be classified as short-term and taxed at 15%.
If you also engage in intraday and F/O trading, such income is classified as income from business and any profits that you make are taxable at slab rates. I’ll link some relevant threads below that may help you understand these tax implications in detail.