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?
The amount isn't considered. The number of units sold is. For each unit, profit is (current price - old price). That will be in LTCG for you
Oh got it! How is it in the case of SIP then? The buy average is calculated as buy price? In case of SIPs, how are the gains differentiated from short terms vs long term as I may have contributed in the last one year also.
SIP will be a mix, depends on when you sell and how many units you sell, some units might be in LTCG and others might be in STCG or all of them might be STCG/LTCG. Your app should be able to generate tax statement for you, so you don't have to think about it.
Hello Viners! I am thinking of withdrawing funds from MFs I have invested in with LTCG ~ ₹1 lac and reinvesting the entire amt into the same fund. This is to book gains and avoid taxes. I know STCG will have to be paid which i am okay wi...
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...
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 sha...
Suppose i am given 100 $ the. How much tax will i have to pay like forex, LTCG or STCG
A friend recently got a SME IPO. 1.2L Rs was the investment and it is expected to open at 100% premium. So basically around 1.2L profit. (>1L limit for capital gains)
His income is 45K for this year, hence under the exception bracket. ...