Selling Shares

If you’re selling shares less than 24 months after you bought them, any gain will be taxed under the short-term capital gains rules, so you’ll pay progressive income tax rates, plus health and education cess and, if applicable, surcharge.

If you’re selling after 24 months, the long-term capital gains rules will apply, so you’ll pay a flat rate of 20%, plus health and education cess and, if applicable, surcharge. Indexation will also apply, which could reduce the tax you pay.

You will be required to declare and pay any applicable capital gains tax to the relevant authorities in your annual tax return.