Photo: iStock
Photo: iStock

How much tax do you pay on your equity investment

  • Capital gains tax is based on the period of holding
  • Taxes reduce the overall returns that you can get from a product

Equity as an asset class is an important portion of an investor's portfolio. However, tax rules vary for different types of equity instruments. For example, capital gains tax is based on the period of holding. So for stocks and equity-oriented mutual funds, long-term is defined as more than 1 year, but for Ulips this parameter doesn’t apply. Taxes reduce the overall returns that you can get from a product. Given that different equity assets attract different tax rules, an investor must take a careful look at the suitability of an investment in terms of taxes too. Here's a look at what the various taxes are.

Here's a look at what the various taxes are
Here's a look at what the various taxes are

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