How much tax you need to pay on sale of Stock, Mutual fund, Property in 2023?

This post was most recently updated on December 23rd, 2022

Dealing with calculating the tax is tough tax in India especially when you know that there are multiple rules around calculating taxes as per the investment instruments.

how much tax you need to pay
how much tax you need to pay

let’s look at how tax is calculated for various investment instruments like stocks, Mutual funds, govt. bonds, Gold, property, Fixed deposits, etc.

how much tax you need to pay on the sale of Stock, Mutual fund, or Property?

As per income tax India the tax rates for investment instruments are as below:

AssetLong term definitionLong term taxShort term taxNote
StocksSold after 1 year from purchase10% of profit15% of profitLong-term tax is applicable only if profit exceeds 1 lakh in a financial year
Equity oriented mutual fundsSold after 1 year from purchase10% of profit15% of profitLong-term tax is applicable only if profit exceeds 1 lakh in the financial year
Non-equity mutual fundsSold after 3 years from purchase20% of profit with indexation benefitProfit added to total income 
Govt or corporate bondsSold after 3 years from purchase20% of profit with indexation benefitProfit added to total income 
GoldSold after 3 years from purchase20% of profit with indexation benefitProfit added to total income 
Gold ETF/Mutual fundSold after 3 years from purchase20% of profit with indexation benefitProfit added to total income 
PropertySold after 3 years from purchase20% of profit with indexation benefitProfit added to total income You can save long-term tax if you re-invest the money you got selling your property
Fixed depositsNo definitionProfit added to total incomeProfit added to total income 
How much tax do you have to pay

Consider using the tax calculator to know how much tax you need to pay with your investments.

While planning your investments you should be aware of the tax impacts for the investment options if you are in a high tax bracket then the post-tax returns in most of the instruments will not even beat inflation.

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