The Classic Partners LLP
Capital Gain on Securities
Shares, mutual funds, F&O, ESOPs, bonds — every security has its own tax treatment. We compute gains across all your demat and broker statements and file them right.
Compute My GainsHow Are Securities Taxed in India?
Gains from securities are taxed based on the type of security and the holding period. Listed equity shares and equity-oriented mutual funds held over 12 months produce long-term gains taxed at 12.5% above Rs. 1.25 lakh per year (Section 112A); held 12 months or less, gains are short-term and taxed at 20% (Section 111A) — provided STT is paid.
Unlisted shares, debt funds, bonds, and ESOPs follow different rules — which is why investors with multiple brokers and asset types benefit from a complete capital gain computation rather than relying on a single broker's report. For the broader framework of rates and holding periods, see our capital gain overview.
Tax Treatment by Security Type
- Listed equity & equity mutual funds — STCG 20%; LTCG 12.5% above Rs. 1.25 lakh; grandfathering of 31 Jan 2018 prices for older holdings.
- Debt mutual funds — purchased on/after 1 April 2023: slab rates always; older units held 24+ months: LTCG at 12.5%.
- Unlisted shares — long-term after 24 months; LTCG at 12.5% without indexation, STCG at slab.
- Listed bonds & debentures — long-term after 12 months; LTCG at 12.5%.
- F&O and intraday trading — not capital gains at all: F&O is non-speculative business income; intraday equity is speculative business income.
- ESOPs/RSUs — perquisite tax at exercise/vesting, then capital gains on sale; foreign stock plans need Schedule FA disclosure too.
What We Handle
Multi-Broker Consolidation
Merging P&L reports from all brokers, AMCs, and demat accounts.
Grandfathering
Applying 31 Jan 2018 fair market values on old equity holdings.
Buyback & Corporate Actions
Splits, bonuses, mergers, buybacks, and rights handled correctly.
Loss Harvesting
Set-off and carry-forward planning to cut this year's tax.
ESOP & RSU Taxation
Domestic and foreign stock plans, with FA/FSI disclosures.
Schedule 112A Filing
Scrip-wise reporting in ITR-2/ITR-3 reconciled with AIS.
Why Choose The Classic Partners
- Qualified Chartered Accountants who handle active traders and long-term investors alike.
- AIS reconciliation so your return never conflicts with what the department already sees.
- Trader classification advice — capital gains vs business income decided correctly.
- Transparent fees and a single point of contact for your filing.
Frequently Asked Questions
How much LTCG on shares is tax-free?
Long-term gains on listed equity shares and equity mutual funds up to Rs. 1.25 lakh per financial year are exempt. Gains above that are taxed at 12.5% under Section 112A.
What is grandfathering of capital gains?
For listed equity bought before 1 February 2018, the cost is stepped up to the fair market value as on 31 January 2018, so gains accrued before that date remain effectively exempt.
Is F&O income a capital gain?
No. Futures and options trading is treated as non-speculative business income, taxed at slab rates and reported in ITR-3, with tax audit applicability depending on turnover.
How are debt mutual funds taxed now?
Units purchased on or after 1 April 2023 are taxed at your slab rate regardless of holding period. Units bought earlier and held over 24 months qualify as long-term, taxed at 12.5%.
Do I need to report each share sale separately in my ITR?
For listed equity covered by Section 112A, scrip-wise details (ISIN, cost, sale value, FMV on 31 Jan 2018 where applicable) are reported in Schedule 112A. We prepare this directly from your broker statements.
Traded stocks or mutual funds this year?
Get every gain computed, reconciled, and reported accurately.
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