Last Updated on 7 months ago by Raj Kumar

How much tax you need to pay?

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

lets 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 sale of Stock, Mutual fund, 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 applicable only if profit exceeds 1 lakh in financial year
Equity oriented mutual funds	Sold after 1 year from purchase	10% of profit	15% of profit	Long term tax applicable only if profit exceeds 1 lakh in financial year
Non-equity mutual funds	Sold after 3 year from purchase	20% of profit with indexation benefit	Profit added to total income
Govt or coprorate bonds	Sold after 3 year from purchase	20% of profit with indexation benefit	Profit added to total income
Gold	Sold after 3 year from purchase	20% of profit with indexation benefit	Profit added to total income
Gold ETF/Mutual fund	Sold after 3 year from purchase	20% of profit with indexation benefit	Profit added to total income
Property	Sold after 3 year from purchase	20% of profit with indexation benefit	Profit added to total income	You can saving 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

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 as if you are in high tax bracket then the post tax returns in most of the instruments will not even beat inflation.