Page Contents
| Financial Product | Type of Income | Tax Treatment | Holding Period | TDS Applicable | Section |
|---|---|---|---|---|---|
| Equity Shares / Mutual Funds / ETFs | Capital Gains | STCG @ 20% (from July 23, 2024); LTCG @ 12.5% over ₹1.25L | <12m / >12m | No | Sec 112A |
| Debt Mutual Funds | Capital Gains | Pre-Apr 2023: STCG @ slab rate Post-Apr 2023: STCG @ slab rate |
Any / >36m (pre-Apr 2023) | No | Sec 50AA, 87A |
| Unlisted Shares | Capital Gains | STCG (<24m): slab rate LTCG (>24m): 20% with indexation |
<24m / >24m | No | Sec 112 |
| Arbitrage Funds | Capital Gains | STCG: 15%; LTCG: 12.5% (₹1.25L) | <12m / >12m | No | Sec 112A |
| FDs / RDs | Interest Income | Taxed at slab rate | – | Yes, if >₹40,000 | – |
| PPF | Interest & Maturity | Fully Tax-Free (EEE) | 15 years | No | – |
| EPF | Interest & Maturity | Tax-free up to ₹2.5L/year; excess interest taxable | Until retirement | Yes, if interest > limit | – |
| SSY (Sukanya Samriddhi Yojana) | Interest & Maturity | Fully Tax-Free (EEE) | 15 years | No | – |
| SCSS (Senior Citizen Savings Scheme) | Interest Income | Taxed at slab; TDS @10% if interest >₹50,000/year | 5 years | Yes | – |
| Life Insurance (Non-ULIPs) | Maturity Proceeds | Premium > ₹5L/year (from Apr 1, 2023): Taxable maturity | – | No | Sec 10(10D) |
| ULIPs (Post-Feb 2021) | Capital Gains | Premium > ₹2.5L/year = Capital Gains Tax on maturity | Depends on product | No | – |
| SGBs | Capital Gains | Tax-free on maturity (8 years); Early exit: LTCG @ 20% with indexation | 8 years | No | – |
| Gold / Digital Gold / Gold ETFs | Capital Gains | Post-Apr 2023: STCG @ slab rate, LTCG @ 12.5% after 24m (from Apr 1, 2023) | <24m / >24m | No | Sec 50AA, 87A |
| Real Estate | Capital Gains | STCG (<24m): slab; LTCG (>24m): 20% with indexation | <24m / >24m | Yes on rent if > ₹2.4L | Sec 54 |
| REITs / InvITs | Dividends & Capital Gains | Dividends: Slab Listed units: equity CG |
<12m / >12m | Yes on dividends | Sec 112A |
| Bonds / Debentures | Interest & Capital Gains | Interest: Slab LTG: 10% (listed), 20% (unlisted with indexation) |
<36m / >36m | Yes | Sec 112 |
| PMS | Capital Gains | Treated as equity: STCG @ 20%, LTCG @ 12.5% (>₹1.25L) | <12m / >12m | No | Sec 112A |
| AIF – Category I & II | Pass-through Gains | Taxed at investor level; based on asset class | Depends | No | – |
| AIF – Category III | Business Income | Taxed at fund level; highest slab up to 42.744% | – | Yes | – |
| Structured Products | Capital Gains / Interest | Depends on structure; taxed as slab or on debt maturity | Product-specific | Depends | – |
| NPS (Tier I) | Maturity | 60% withdrawal tax-free; 40% annuitized and taxable as pension | Retirement age | Yes on pension | Sec 10(12A) |
Sec 112A – Equity LTCG @ 12.5% after ₹1.25L
Sec 50AA – All debt-style mutual funds post-April 2023 taxed as STCG
Sec 10(10D) – Life insurance maturity exemptions
Sec 94B – Bonus stripping (disallows capital loss set-off)
87A – ₹60,000 rebate (total income ≤ ₹12L under new regime)
| Category | Description |
|---|---|
| Equity-Oriented Funds (EOFs) | Funds investing ≥65% in domestic equities (excluding equity fund of funds). STT applicable. |
| Specified Mutual Funds | Funds investing ≤35% in domestic equities. Includes debt funds, gold ETFs, fund-of-funds, etc. Section 50AA applies. |
| Other Mutual Funds | Includes hybrid, balanced funds, or those not classified as EOFs or Specified MF. |
| Investor Type | STCG (≤12 months) | LTCG (>12 months) |
|---|---|---|
| Resident Individuals / HUF / AOP / BOI | 15% (up to 22 July 2024), 20% (from 23 July 2024) | 10% (>₹1.25 lakh) (up to 22 July 2024), 12.5% (from 23 July 2024) |
| NRIs | Same as above | |
| Domestic Companies | 15%/22%/25%/30% depending on turnover/tax regime |
🔸 LTCG computation uses grandfathering provisions: Higher of actual cost or lower of (FMV as on 31 Jan 2018, sale price).
| Investor Type | STCG | LTCG |
|---|---|---|
| Resident Individuals / HUF / AOP / BOI | Tax slab rate | Not Applicable (all are STCG) |
| NRIs | Tax slab rate or 30% | Not Applicable |
| Companies | 15%/22%/25%/30% based on tax regime |
🔸 No indexation, all gains deemed STCG regardless of holding period.
| Investor Type | STCG | LTCG |
|---|---|---|
| Resident Individuals / HUF / AOP / BOI | Tax slab rate | 20% (with indexation) up to 22 July 2024 12.5% (without indexation) from 23 July 2024 |
| NRIs | 30% STCG | 20% with indexation (listed) / 10% (unlisted) / 12.5% (from 23 July 2024) |
| Companies / Firms | 15%/22%/25%/30% |
| Investor Type | Tax on Dividend | TDS on Dividend Income |
|---|---|---|
| Resident Individuals / HUF | Tax slab rate | 10% if > ₹5,000/year |
| Domestic Companies | Tax slab rate | 10% |
| NRIs | 20% TDS or lower as per DTAA | 20% or DTAA rate |
| Investor Type | TDS on Capital Gains |
|---|---|
| Resident Individuals / HUF | No TDS |
| NRIs | 20% or DTAA rate, whichever is lower |
| Transaction | STT Rate | Applicable To |
|---|---|---|
| Sale (delivery-based) | 0.001% | Seller |
| Sale (non-delivery based) | 0.025% | Seller |
| Redemption to Mutual Fund | 0.001% | Seller |
| Income Range | Individual / HUF / AOP | Domestic Co. | Foreign Co. |
|---|---|---|---|
| ≤ ₹50L | NIL | NIL | NIL |
| ₹50L – ₹1Cr | 10% | 7% | 2% |
| ₹1Cr – ₹2Cr | 15% | 12% | 2% |
| ₹2Cr – ₹5Cr | 25% | – | 5% |
| > ₹5Cr | 37% (Capped at 15% for capital gains u/s 112, 112A, 111A) | – | 5% |
+ Health & Education Cess @4% on tax + surcharge.
| Provision | Up to 22 July 2024 | From 23 July 2024 |
|---|---|---|
| STCG on EOFs | 15% | 20% |
| LTCG on EOFs | 10% | 12.5% |
| LTCG on non-EOF/non-Specified MFs | 20% with indexation | 12.5% without indexation |
| LTCG holding period for Other MFs | >36M (unlisted), >12M (listed) | >24M (unlisted), >12M (listed) |
From FY 2025-26, as per Finance Act (No. 2) 2024, a specified mutual fund means:
Fund with ≥65% investment in debt or money market instruments
Fund of Funds investing ≥65% in such schemes
Thus, equity fund-of-funds will also be classified as “specified mutual funds” (short-term capital gains only).
| Fund Type | Tax Treatment (Resident Individual) |
|---|---|
| EOF (Direct Equity) | 15% STCG, 10/12.5% LTCG |
| Debt Funds / Gold ETF / FoF | Tax slab (STCG), 20% (LTCG till 22 July), 12.5% (after) |
| Specified MFs (Post Apr 2023) | Entire gain taxed as STCG at slab rate |
| Dividend | Taxable at slab rate; TDS @ 10% if > ₹5,000 |
Key Compliance Due Dates—Compliance Calendar—January 2026 7 January 2026 TDS / TCS Payment – For December 2025 10 January 2026… Read More
Supreme Court: Tiger Global Not Eligible for Mauritius Treaty Exemption on Flipkart Share Sale What is background of Tiger Global… Read More
Labour Code Impact – Q3 FY26 (as of 17 Jan 2026) IT Services Sector: Largest Impact—What stands out immediately Across the… Read More
Tax compliance is Imp : Filing an ITR is not always about paying tax Non‑Resident Indian bought property, TDS was… Read More
Booking “sales commission” in names of family members or low-income PAN holders Applicability of Section 194H Section 194H of the… Read More
How AI, Big Data, and Tax Intelligence Are Transforming the CA Profession in India With the rapid rise of artificial… Read More