How are capital gains on shares taxed?

Name: Vijay R Singh & Co.
Address: Office No. 4, Vishal CHSL, D Wing, Sir Mathuradas Vasanji Road, Azad Nagar, Opp. Andheri Gymkhana, Andheri East, Maharashtra, 400069, IN
Telephone: +91 98607 23959

CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W

Short answerFor listed shares, gains are short-term if held up to 12 months (taxed at 20% under Section 111A) and long-term if held over 12 months (taxed at 12.5% over a ₹1.25 lakh yearly exemption, under Section 112A). These rates apply to sales on or after 23 July 2024.

Listed shares

STCG: 20% (Section 111A). LTCG: 12.5% on gains over ₹1.25 lakh a year (Section 112A). Confirm rates per the current Finance Act.

Unlisted shares differ

They turn long-term after 24 months and LTCG is 12.5% without indexation. See the post-Budget-2024 changes.

NRI Taxation

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This answer is general information for NRIs, not tax advice. Tax rates, thresholds and forms change with each Finance Act — please confirm the current position for your own facts, or speak to us, before acting.