Capital gains, STCG/LTCG, F&O tax, tax harvesting and reporting.
Capital gains tax is the tax levied in India on the profit earned from selling a capital asset such as shares, mutual funds, property, or gold.
Short-Term Capital Gains (STCG) on equity refers to the profit earned when listed equity shares or equity-oriented mutual funds held for 12 months or less are sold at a price higher than their purchase cost.
Long-Term Capital Gains (LTCG) on equity is the profit earned from selling listed shares or equity mutual funds held for more than 12 months, taxed at a concessional flat rate under Indian income tax law.
Tax on shares in India depends on whether you trade delivery-based equity, intraday equity, or futures and options - each category is taxed under a different head of income with distinct rates and filing rules.
Income from Futures and Options trading is treated as non-speculative business income under Indian tax law, making it subject to income tax slab rates with specific audit and filing obligations.
Intraday equity trading profits are classified as speculative business income under the Income Tax Act and taxed at the trader's applicable slab rate.
Mutual fund taxation in India depends on the fund category and holding period, with equity, debt, and hybrid funds each attracting different short-term and long-term capital gains tax rates.
Dividend income received by Indian investors from shares or mutual funds is taxable in the hands of the recipient at their applicable slab rate, after the abolition of the Dividend Distribution Tax regime in 2020.
Securities Transaction Tax (STT) is a direct tax levied by the Indian government on the purchase and sale of securities listed on recognised Indian stock exchanges.
Tax harvesting is the practice of deliberately realising investment losses to offset taxable capital gains, thereby legally reducing your overall tax liability in a given financial year.
Indexation benefit adjusts the original purchase price of an asset for inflation, reducing the taxable capital gain and thereby lowering your long-term capital gains tax liability.
Carry forward of capital losses allows Indian taxpayers to offset losses from capital asset sales against capital gains in future years, reducing tax liability over up to eight assessment years.
Set-off rules allow taxpayers to adjust losses from one income source against gains from another, reducing overall taxable income under the Income Tax Act, 1961.
ITR forms for stock traders and investors are the specific Income Tax Return schedules - primarily ITR-2 and ITR-3 - used to report capital gains, F&O trading income, and intraday profits to the Income Tax Department of India.
Section 44AB of the Income Tax Act mandates a tax audit by a Chartered Accountant when an F&O trader's turnover exceeds prescribed thresholds or when profits fall below presumptive limits.
Section 44AD lets eligible small business owners declare a fixed percentage of turnover as profit, skipping detailed books of accounts and tax audit requirements.
NRI taxation on the Indian stock market refers to the set of income tax, TDS, and DTAA rules that govern how non-resident Indians are taxed on capital gains, dividends, and other investment income earned from Indian securities.
Section 80C of the Income Tax Act allows Indian taxpayers to claim deductions of up to ₹1.5 lakh per financial year by investing in specified instruments or incurring eligible expenses.
Section 80D allows Indian taxpayers to claim income tax deductions on premiums paid for health insurance policies covering themselves, their family, and parents.
In India, gains from transferring Virtual Digital Assets (VDAs) like cryptocurrency are taxed at a flat 30% rate under Section 115BBH of the Income Tax Act, with no benefit of basic exemption or loss set-off against other income.
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