We have been writing extensively about mutual funds on RupeeMagic blog since some time. Like any other assets, profit gained on mutual funds is also taxable. We have a comprehensive guide on taxation of mutual funds written to explain our users the tax implications on your mutual fund investments. Here we will try to touch on a bit of broader area of taxation on capital gains.
At the time of sale of any asset ( like Real Estate, Gold, Mutual Fund etc.), an individual is liable to pay tax on the gains earned at the sale of asset. This profit/gain that is earned on an asset is termed as Capital Gain. In India, capital gains are classified into two classes:
- Long Term Capital Gains (LTCG), and
- Short Term Capital Gains (STCG)
Today, we will discuss about Long Term Capital Gains and the prevailing rates for the same.