Questions about capital gains tax on shares

When is a gain on shares long term?

When the listed shares were held for more than 12 months before the sale. A holding of 12 months or less gives a short term gain.

What are the rates on listed equity?

Short term gains are taxed at 20 percent and long term gains at 12.5 percent on the part above 1.25 lakh rupees in a financial year, for transfers on or after 23 July 2024. Cess and surcharge apply on top.

Can losses reduce the tax?

A short term capital loss can be set off against short or long term gains; a long term loss only against long term gains. Unused losses carry forward for 8 years if the return is filed on time.

Where do I check my gains before filing?

The AIS and TIS module walks through matching the broker statement to the figures the tax department holds, before the ITR is filed.