Income tax on equity shares and mutual funds

POSTED BY itsvibhor ON September 18, 2013 9:47 pm COMMENTS (3)

If I buy a share and sell it after 13 months at a profit-what is the income tax I would be subjected to assuming I am in the 30% bracket?

Also, in case of an equity mutual fund, if I invest for 13 months through SIP & then redeem the entire amount, how is the treatment of income tax?


3 replies on this article “Income tax on equity shares and mutual funds”

  1. ashalanshu says:

    Dear Dipesh, if the transactions are losses, LTCL should be ignored as LTCG are tax free. STCL can be adjusted against other STCG & if no or less STCG is there, the residual STCL can be carried fwd to next 8 FY to be adjusted by filing Income Tax Return & reporting your losses. Please do note to claim carry over your losses, the ITR must be filed before due date.



  2. Dipesh says:

    Hi Ashal,
    In case transaction has led to loss then what is the scenario, can we claim it during tax filing.


  3. ashalanshu says:

    Dear Itsvibhor, the shares sold in exchange after 13 months holding ‘ll be tax free.

    In case of Eq. MFs, only those units which have completed 1Y of holding in your SIP (normally first 2 months out of your 13 SIPs) ‘ll be tax free. Remaining Units of less than 1Y holding ‘ll be taxable @ 15.45% rate.

    Here I’m assuming all the above transaction are generating profit to you. 🙂



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