top of page

What are the different types of investment-related taxes?

Curious about Taxes Investment

What are the different types of investment-related taxes?

In India, there are different types of investmentrelated taxes. Some of the common investmentrelated taxes are:

1. Shortterm capital gains tax: If an investor sells an asset held for less than 12 months, the profit made on the sale is considered as shortterm capital gains and is taxed at the applicable rate.

2. Longterm capital gains tax: If an investor sells an asset held for more than 12 months, the profit made on the sale is considered as longterm capital gains and is taxed at a lower rate compared to shortterm capital gains tax.

3. Dividend distribution tax: The dividend paid by a company to its shareholders is taxed at the company's end before it is distributed to the shareholders.

4. Securities transaction tax: This tax is levied on the purchase and sale of securities listed on recognized stock exchanges in India.

5. Income tax: Income tax is levied on the total income earned by an individual or a company, which includes income from investments such as interest, dividends, and capital gains.

6. Wealth tax: Wealth tax is levied on the net wealth of an individual, which includes investments such as stocks, bonds, and real estate.

It is important to understand the tax implications of different types of investments before making investment decisions to avoid any surprises at the time of filing tax returns.

Empower Creators, Get Early Access to Premium Content.

  • Instagram. Ankit Kumar (itsurankit)
  • X. Twitter. Ankit Kumar (itsurankit)
  • Linkedin
bottom of page