Taxation in Investments - A Brief Overview
A simple bird’s eye view on the taxes applicable in India and as an investor, what are the ones you should be concerned with? Types of Taxation in India There are multiple types of taxes in India . However, from the perspective of investments, the concerned types of taxes are only limited to a handful few. Taxes will broadly fall into the categories of Direct and Indirect taxes. The taxes are different from each other mainly in the way they are implemented. From the perspective of investments, the taxes involved mostly fall within the ambit of direct taxes. Direct taxes involve the following taxes - Income Tax Gift Tax Wealth Tax Capital Gains Tax Securities Transaction Tax Corporate Tax The only indirect tax that can be applicable on income from investments is TDS (Tax Deducted at Source). Tax Implications of Investments A long-term investment is when an individual invests in a company, security, or asset and doesn't sell it for at least one year. Long-term investments are taxed ...