"Thus far, shares and mutual funds held for more than 12 months had been exempted from capital gains tax while 15% tax was levied on gains made in less than 12 months. LTCG tax in this case is 20% with an inflation-adjustment benefit.The economic circumstances in the country were very different when LTCG tax on stocks was removed, Adhia said. Capital gains on equities were kept out of tax net while those on other assets were taxable. In the case of other asset classes, if sold after two years, the tax rate is 20% against 10% in the case of equities. We should attempt in that direction so that your investment becomes tax neutral, your choice of investment becomes tax neutral.

Source: Economic Times February 02, 2018 19:07 UTC