In India,Difference between short term and long term capital gains tax is imposed on the profits obtained from the sale of assets. The tax treatment of capital gains is determined by the holding period of the asset, which is the duration between its acquisition and sale. Different tax rates apply to short and long terms capital gains in India.
- Short-term capital gains tax:
It is applicable to the profits earned from the sale of a asset held for less than 36 months. For equity-oriented funds and shares, the tax rate is 15% plus applicable surcharge and cess. Other assets such as debt funds, real estate, gold, etc., are subject to tax at the individual’s applicable income tax slab rate.
For more information visit this site: https://www.incometax.gov.in
- Long-term capital gains tax:
It is applicable to the profits earned from the sale of a asset held for more than 36 months. Since April 1, 2018, the tax rate for equity-oriented funds and shares is 10% on gains exceeding Rs. 1 lakh per financial year, without the benefit of indexation. For other assets like debt funds, real estate, gold, etc., the long-term capital gains tax rate is 20% with the benefit of indexation.
For further details access our website: https://vibrantfinserv.com
In summary, short-term capital gains tax is applicable to the profits earned from the sale of a asset held for less than 36 months, with varying tax rates based on the asset type. Long-terms capital gains tax applies to the profits earned from the sale of a asset held for more than 36 months, with a 10% tax rate for equity-oriented funds and shares (without indexation) and a 20% tax rate for other assets (with indexation).
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