The profit you earn on selling your capital assets is termed as capital gains. There are two types of taxes applied on capital gains, short term and long term.
| Investment Options | Short Term Capital Gains | Long Term Capital Gains |
| Listed Shares (STT is paid**)
Equity Mutual Funds |
< 1 year ; 15% | >1 Year; 10% without Indexation* |
| Bonds | <1 year; Income tax rate | >1 Year; 10% without Indexation |
| Debt Mutual Funds
Gold Gold ETF |
<3 years; income tax rate | >3 years; 20% with indexation |
| House property | <2 years; income tax rate | >2 years; 20% with indexation |
*LTCG Tax is applicable from 1st April 2018 on profit exceeding Rs.1 Lakh. Gains made till 31st Jan 2018 will be grandfathered or exempted.
**Securities Transaction Tax (STT) tax paid at the time of transaction in securities through a recognized stock exchange
