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.