What tax applies on ₹1 lakh short-term equity gains?
Based on these numbers, tax payable is about ₹20,000 on ₹1,00,000 taxable gain.
How are equity gains taxed?
For listed equity shares and equity-oriented mutual funds: short-term gains (held under 12 months) are taxed at 20% under Section 111A. Long-term gains (held over 12 months) are taxed at 12.5% under Section 112A, but only on the amount exceeding ₹1.25 lakh in total equity LTCG per financial year. These rates apply from 23 July 2024 onward and are unchanged for FY 2025-26 and FY 2026-27.