How much is the tax on Long term capital gain in India?

Question

How much is the tax on Long term capital gain (especially gain from mutual funds)? Is there any way to minimize this tax?

Answer 1

Long term Capita Gains is Gains arising out of sale of investment held for more than a year.

For equity (shares of listed companies) - No tax on Long Term Capital Gains

For Equity MFs (MFs investing more than 65 % in equity) - No tax on long term capital gains.

For Debt MFs (MFs investing less than 65 % in equity) - There are two options. First - flat 10 % on LT Capital Gains. Second - 20 % with indexation on LT Capital Gains.

Hope the info is useful.

Answer 2

Yes it is true the Long term capital gain on sale of mutual fund is tax exempt under section 10(38) of the income tax act, 1961

Answer 3

As far as know, on MF long term cap. gains (ie, held for more than an year) there is no tax

Answer 4

Read about Capital gains, computation of capital gains and income tax rates on capital gains: http://mytaxes.in/index.php?topic=30.0.

For all the available Exemptions from Capital Gains under Sections 54, 54B, 54D, 54EC, 54F, 54G, 54GA, read: http://mytaxes.in/index.php?topic=31.0.