How Much Tax You Need To Pay On Sale Of Stock, Mutual Fund And Property In 2023?

This post was most recently updated on April 6th, 2023

If you’re planning to sell stocks, mutual funds, or property in 2023, it’s crucial to understand the tax implications of these transactions. Depending on your holding period and the type of investment, you may be subject to capital gains tax. In this article, we’ll explore the tax rules for selling investments in 2023 and provide tips on minimising your tax liability while maximizing your returns. So, let’s dive in and learn more about how much Tax You need to Pay on Sale of Stock, Mutual fund and Property in 2023.

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:

Asset	Long term definition	Long term tax	Short term tax	Note
Stocks	Sold after 1 year from purchase	10% of profit	15% of profit	Long-term tax is applicable only if profit exceeds 1 lakh in a financial year
Equity oriented mutual funds	Sold after 1 year from purchase	10% of profit	15% of profit	Long-term tax is applicable only if profit exceeds 1 lakh in the financial year
Non-equity mutual funds	Sold after 3 years from purchase	20% of the profit	Profit added to total income
Govt or corporate bonds	Sold after 3 years from purchase	20% of profit with indexation benefit	Profit added to total income
Gold	Sold after 3 years from purchase	20% of profit with indexation benefit	Profit added to total income
Gold ETF/Mutual fund	Sold after 3 years from purchase	20% of profit with indexation benefit	Profit added to total income
Property	Sold after 3 years from purchase	20% of profit with indexation benefit	Profit added to total income	You can save long-term tax if you re-invest the money you got selling your property
Fixed deposits	No definition	Profit added to total income	Profit 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.