tax planning for investors

One Simple Tax Planning For Investors in Shares & Units

This simplest and very effective tax planning for investors who dabble in shares and mutual fund. As you know , investors in listed shares or mutual fund units have to deal with , generally , two types of taxable sub-head i.e Short Term Capital Gain (STCG) or Long Term Capital Gains (LTCG ) . While the LTCG arising on listed shares and sold through stock exchange is tax free u/s 10(38) , the STCG is charged to tax @ 15 % if the listed shares are sold through stock exchange. This posting is for adopting a strategy for reducing the tax on STCG on listed shares sold through stock exchange or mutual fund units sold back (redemption)  with STT.