There is no indexation benefit for equity capital gains.... beyond 1L, you will be taxed 10% 
  
 So, if you're LTCG is 1.2L, you will have to pay tax of 2k (10% on 20k that is beyond 1L)....

Product Manager

I had invested in a SIP (equity) for 3 years and am withdrawing the investment via a 12 month SWP spread across two financial years.   This helps me ensure that the capital gains do not exceed 1L i...

Welcome to Personal Finance's Private Community

I had invested in a SIP (equity) for 3 years and am withdrawing the investment via a 12 month SWP spread across two financial years. 

This helps me ensure that the capital gains do not exceed 1L in any of the financial years. 

Assuming a scenario where the capital gains exceed 1L, how will they be taxed? And if I need to claim an indexation benefit, how do I do it?

How are gains from SWP taxed?

Founder’s Office

How are gains from SWP taxed?- Grapevine

What to do once I retire? Let's say my mutual funds investments have become 1.5 cr now and I have reached retirement age. I have an own house and car, but now no more monthly income so what to do with my investment now? make an FD and pay tax on interest amount and remaining amount as my monthly salary or any other better options kindly suggest.

What to do when we retire with all our investments?

Software Developer

I recently bought a home by selling some mutual funds + bank loan. 

I still have some mutual funds left and I was wondering if I could reduce my tax liability on capital gains by selling and re buying mutual funds. 

Anyone who has done this? Or anyone who has a good CA who can advise on tax consultation?

Thanks in advance :)

Tax advice

Program Manager

I have been working professionally working from the last 3 years as a software engineer and I have 25 in my savings account, I have never invested my money before but it feels like a serious mistake on my end. I am looking for advice how should i split this money and invest in various streams i am ready to
Invest 95% of it

I have 25 lakhs in my account

Can someone here explain the LTCG and STCG taxation on equity investments (or maybe applicable to other asset classes also) ? From what I understand, LTCG is taxed at 10% on profits exceeding 1 lakh. However, when making a partial withdrawal, what exactly constitutes profit?

let's say I have invested 10 lac in a mutual fund today and after 3 years grew to 13 lakhs with profit of 3 lakhs, now if I withdraw 2 lakhs after that 3 years, will be it be considered as profit withdrawal or the withdrawal of the principal that I invested? and what will be the taxes on that?

LTCG and STCG taxes on equity investements

Hi guys, 
I have around 4L cash lying around which I wanted to invest. Currently, I think I am in a position to take maximum risks, and see where things go. I also haven’t redeemed the 1.5L tax deduction on Section 80c so PPF and ELSS are open as an investment opportunity. 

I was worried to invest in the current equity markets. Have just put in around 6.5L into Equities in December (Split equally amongst Large, Mid, Small and Flexi Cap) 

Needed advice on which seems a better option:
- Put 1.5L in PPF and the rest in Large Cap MFs since Large Caps haven’t peaked yet
- Distribute the 4L over the next year (~33k/month) and invest it in a SIP to account for market changes
- Put the entire amount into equities (1.5L ELSS, 2.5L Large Caps)

Also, needed advice if it’s better to look for a Real Estate or SGBs Investment to diversify risk? (<25 yo right now so can take a property around 40-50L to test the waters)

What are your views on the current market? I’m planning to continue investing a significant chunk (~50% salary) into SIPs all through. Should I reconsider?

Doubling down on Equities?

Should i do any changes in my SIPs?

Data Scientist

Hello community, 

Need help in the decision-making of the money that I have in my bank.
Currently, I have around 13lakhs in my bank account. I dont know what to do with that money. I dont feel safe in stocks and dont know any other options where to invest money.
Help would be genuinely appreciated 🙏.  Thank you

Age - 24.

Investment help

Software Engineer

Welcome to Indian Startups's Private Community

So say one has 100 ESOPs which a person exercised and converted to say 1000 shares  in say Jan 2024

Now if IPO happens in aug 2024, what will be the long term capital gains tax rate for these shares.

Will the tax rate change if one sells them say in Feb 2025, sept 2025 , Feb 2028 considering tax policy, tax rates to remain unchanged?

How's are captial gains taxed post IPO sell off?

UX/UI Designer

Can someone share in detail how can I invest in US Stock Market from India, what would be the remmitance charges and what are the tax implications, other things to keep in mind l, etc etc..

Investing in US Stock Market

Sales

Hi, Say a Series B (US) funded startup gives me 3000 shares which are worth $5/share. It follows the usual vesting period of 4 years. Now assume 4 years have passed and all the 3000 shares are vested but the company hasn't gone IPO. 

Here are my quesions

- When exercising US stocks in India, what is the % of withholding tax I should pay?
- Say if I exercised all the shares and if I decide to leave the company do I get to keep those exercised shares with me forever?

I prefer answers from people who have exercised ESOPs before. I don't want answers like "It depends, Talk to your HR or CA". Appreciate any inputs.

Question on US based ESOPs in India

Analyst

Current Portfolio review - Anything that I should consider selling? (Shared my current SIPs desc/ratio in another post due to single image/post limitation, I've done 35k/70k/1L LTCG Profit harvesting in last 3 years)

Say you have ESOPs in a company. Once the company goes public, is there a holding period applicable for the esop before which it can not be sold?
Like 1 month/3 months/6 months holding periods?

Can someone also explain how the conversion of ESOPs to RSUs happens after IPO?

And mainly, tax implications and how to save tax?

Can someone explain esop selling during/after ipo

Tax harvesting is a strategy of selling your equity units to book long-term capital gains and reinvesting the proceeds in the same stock.

You have to pay tax @ 10% on long term gains(On gains >1L)  arising from sale of listed equity shares/mutual funds.

You can book profits on stocks held for more than 12 months upto Rs. 1 lakhs in a financial year, long term profits upto 1 Lakh in a FY are exempt from taxes under income tax act.
You can reinvest the proceeds again in the same stock hence having that stock in your long term portfolio.

LTCG: Held for >12 months

Please note you will be incurring a small amount in brokerage and other charges.

Tax harvesting- Save 10,000 in taxes before March ends

Chartered Accountant

Context : I have been saving up money for over a year now and not actively invested it anywhere due to x reasons.

Now I want to start SIPs as I have achieved my emergency fund and want to reap the benefits of the power of compounding.

Q.1) Which apps offer the option of one time lumpsum + continuing the monthly SIP in a fund?
(Lumpsum to makeup for what I failed to do last year) Is what I am thinking the best strategy and practical? if not, please suggest

Q.2) Recommend me an app with a good customer support team , good number of fund options to invest and have hassle free deposits and withdrawals ?

PS: I have downloaded Groww and I don't see it offering many funds to invest into.

Help with getting started

DevOps Engineer

I am of the understanding that capital gains under 1L are tax free and those gains aren’t to be added to your taxable income. However, I met a friend this evening who informed me that her CA says that capital gains are always added to the taxable income and are not really tax free regardless of them being under 1L. If this is true, my friend is not getting the 6K rebate she was hoping to get since her taxable income now crosses the 5L barrier. Had the capital gains not been added to her taxable income, she would well under this 5L barrier. 

Can anybody please confirm if this is indeed true?

Some additional context: The capital gains are from her ELSS investments which were sold in the last FY and amounted to about 50k over the sale of about 1.7L

If this is indeed true, I have a follow up question from an inversion POV - if capital gains indeed exceed 1L, will one then be taxed twice? i.e. The 10% LTCG tax as well as the slab based tax on taxable income (salary - dedications + capital gains)

Capital gains related tax query

Hi guys
A finance noob here.
Recently, I saw a lot of videos about Step up SIP and I agree with the point that after every raise you should increase your investments, but I tried a few calculators and didn't find that step up system increased my profits insanely in any way.
E.g.
7000 monthly SIP for 10 Yr at 12% Return
Invested amount = 8.4 L
Estimated Return= 7.8 L
Total = 16.26 L

7000 monthly + 10% step for 10 Yr at 12% Return
Invested amount= 13.38 L
Estimated Return = 10.2 L
Total = 23.6 L

Here I am paying approx 5 L more and the benefit is around 7 L more (out of which 5L is from my pocket), so 2L benefit.

Can someone please explain why this step up is so hyped as of now? Or what did I miss?

How are gains from SWP taxed?

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