💸 Taxation in Investments (India)

📊 LTCG, STCG & Dividend Tax – At a Glance

Asset Type	Holding Period	Short-Term Capital Gain (STCG)	Long-Term Capital Gain (LTCG)	Dividend Tax
Equity Shares / Equity Mutual Funds	< 12 months = STCG > 12 months = LTCG	15% flat	10% above ₹1 lakh (no indexation)	Taxable as per income slab
Debt Mutual Funds	< 36 months = STCG > 36 months = LTCG	As per income tax slab	Removed from FY24-25 — Now taxed as per slab	Taxable as per income slab
Gold (Physical, ETFs, SGBs)	< 36 months = STCG > 36 months = LTCG	As per income tax slab	20% with indexation	Not applicable

Note: SGB interest (2.5% p.a.) is taxable; redemption after 8 years is LTCG exempt.

💡 Popular Tax-Saving Investment Options (Under 80C)

• 📌 ELSS Mutual Funds – Lock-in 3 years
• 📌 Public Provident Fund (PPF) – 15-year term, tax-free interest
• 📌 National Pension System (NPS) – Extra ₹50,000 deduction (80CCD(1B))
• 📌 Life Insurance Premiums, EPF contributions
• 📌 Fixed Deposits (Tax-saving 5 year)

Total deduction limit under 80C: ₹1.5 lakh per financial year

❌ Common Tax Mistakes by Investors

• ❗ Not accounting for capital gains in ITR
• ❗ Confusing ELSS with regular mutual funds
• ❗ Redeeming before holding period – leads to STCG
• ❗ Not using 80C limit fully (wasting tax savings)
• ❗ Ignoring tax on dividends (since FY21, it’s taxable to receiver)

Always download your Capital Gains Statement from broker platforms before ITR filing.