Share market basics
Long-term capital gains: profit on listed shares or equity funds held for more than 12 months, taxed at a concessional rate above an annual exemption.
LTCG, long-term capital gains, is the profit on listed shares, equity ETFs or equity mutual funds that you held for more than twelve months before selling. It is taxed at a lower rate than short-term gains, and a portion of gains each year is exempt. At the time of writing, the rate is 12.5% on gains above ₹1.25 lakh in a financial year, without indexation; rates and thresholds have changed in recent budgets, so verify the current figures. Suppose you bought 100 SBI shares at ₹600, held them fourteen months and sold at ₹850. The gain is ₹25,000, which falls within the exemption if you have no other long-term gains that year. Long-term losses can be set off only against long-term gains and carried forward for eight years. Holding period is counted from the settlement date, so keep your contract notes.
VideoA share is a portion of a company. The share market is where those portions change hands. Here is how it works, what you can trade in it, and why most people who trade actively lose money.
VideoThe share market runs on two activities that look alike and are nothing alike. Investing is owning a business for years. Trading is profiting from price moves over hours or weeks. Mixing them up is behind most early losses.
VideoTrading comes in a few distinct forms, and the one you pick decides how much time, capital and stress it takes. This lesson explains intraday, swing, positional, futures and options trading with Indian examples.
