Navigating Long-Term Capital Gain Tax on Shares: A Comprehensive Guide

Summary

This blog explains the classification and taxation surrounding capital gains from various assets based on holding periods and recent legislative changes. It details short-term and long-term gains with focus on Section 112A’s impact on shares and mutual funds, including exemptions and grandfathering provisions. The analysis helps investors navigate tax rates, loss offset, and efficient planning.

Key Takeaways

Capital gains are classified as short-term or long-term based on holding duration.
Section 112A significantly alters LTCG taxation on shares and mutual funds.
Exemptions like Section 54F and grandfathering provisions aid tax planning.
Capital losses can offset gains and be carried forward for eight years.