How much tax do equity investors pay in India?
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The Securities and Exchange Board of India recommended tax relief for investors as markets struggle.
- ✓Currently, long-term gains face a 12.5% tax, while short-term gains reach 20%.
- ✓Finance Minister Nirmala Sitharaman said, "concerns over taxation had grown louder." Many investors hope these changes will help improve poor returns on equities.
Story at a Glance
- Category
- MARKET
- Reported By
- Business Line
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
India's markets regulator, the Securities and Exchange Board of India, has recommended tax relief for foreign investors and domestic mutual fund investors.
India's benchmark stock indexes are among Asia's weakest performers, prompting calls from investors for reforms to improve post-tax returns. The BSE Sensex and NSE's Nifty 50 are down 6.2% and 4.8% respectively over the last two years.
THE TAXES
Domestic and foreign investors are taxed alike in India.
A 12.5% tax is imposed on gains made on shares held for more than one year, while for shares held for less than 12 months taxes go up to 20%.
In addition, India often adds additional levies for purposes ranging from health to education, which means the effective tax rate can rise to nearly 15% on long-term gains and almost 24% on short-term gains.
Unlock the Full Story with ArthNow Premium
To continue reading this complete financial story and in-depth market context, upgrade to ArthNow Premium. Enjoy unlimited access across Web and Mobile.
Business Line
Read the full, original unfiltered story directly on the publisher's portal.