How are these portfolios taxed?

How are these portfolios taxed?

When you invest in portfolios through 5Paisa, the stocks are credited to your Demat account, similar to direct stock purchases on the exchange. The profits you accrue are subject to capital gains tax, determined by the duration for which you hold the stocks. It is going to be either STCG or LTCG:


  • STCG (Short-Term Capital Gains): If you sell your shares within 12 months of purchase, then the profits are considered STCG and taxed at 15%.
  • LTCG (Long-Term Capital Gains): If you sell your shares after 12 months of purchase, then the profits are considered LTCG and taxed at 10%. However, there is the added benefit of an exemption on taxes for up to Rs. 1 Lakh of profits. After 1 Lakh of profits, all LTCG profits are taxable.


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