InvestorQ : Is the Rs.1 lakh exemption on LTCG on equity applicable separately to equity and equity funds?
Niraj Mehta made post

Is the Rs.1 lakh exemption on LTCG on equity applicable separately to equity and equity funds?

Answer
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Mary Joseph answered.
1 year ago


Here is the clarification. This is the blanket limit for all definitions of equity overall. That is the total exemption per financial year. While the tax looks like a fairly straightforward flat tax on profits exceeding a threshold of Rs.1 lakh per annum, there are some nuances to understand. The tax on LTCG will apply to direct equities and equity mutual funds. If the sum of the profits on equities and equity funds exceeds Rs.1 lakh then you will have to pay tax at 10% on the excess profit above Rs.1 lakh. For that purpose you will be tracked through your PAN number to which both your trading account and your mutual fund folios are mapped.