INCOME TAX · INVESTMENTS AND CAPITAL GAINS
Stocks and Mutual Funds: Short-Term and Long-Term Capital Gains Explained
Understand holding periods, equity tax rates, the ₹1.25 lakh annual threshold and why debt funds follow different rules.
By Vyapar Setu Online | Investments and capital gains · 26 October 2026
Income Tax learning series · Investments and capital gains · Article 21 of 27
Selling an investment for ₹3 lakh does not mean ₹3 lakh is taxable profit. Start with what you sold, what it cost and how long you held it. Those three facts usually explain more than the size of your bank credit.
Year guide: Numerical limits, examples and familiar section numbers in this article refer to FY 2025–26 / AY 2026–27 under the Income-tax Act, 1961, unless stated otherwise. Income from 1 April 2026 belongs to Tax Year 2026–27 under the Income-tax Act, 2025, with corresponding provisions and numbering. Check the year before applying a rule. Official transition guidance.
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For learning and preparation. Verify the rules and official guidance for your period and circumstances before making a filing or tax decision.
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