Lesson 27 of 28 · Wait a year before you sell · 3 min read · Reviewed 15 Oct 2026
Gains on listed shares and equity funds held 12 months or less are short term, taxed at 20%. Held longer, they are long term: the first ₹1.25 lakh a year is tax-free and the rest is taxed at 12.5%. On a ₹2 lakh gain, selling at 10 months costs about ₹41,600 in tax; at 14 months, about ₹9,750.
The holding period starts on the day you buy. For SIPs, every instalment has its own date, so some units turn long term before others.
If you are close to 12 months and don’t need the money, waiting can cut the tax sharply.
Key idea: Rates for sales on or after 23 Jul 2024, with 4% cess. Check the latest Budget or ask your CA before acting.
Try the calculator and the one-question quiz on this page to check your own numbers.
No. Debt funds bought from 1 April 2023 are taxed at your slab rate however long you hold them.
Yes. Short-term losses can be set off against short- or long-term gains; long-term losses only against long-term gains. Unused losses carry forward for eight years if you file on time.
Your CAS lists every purchase with its date. Reva’s capital gains page matches sales to purchases for you.
For learning only, not investment advice. Designed and built by people who have worked at India’s leading wealth management firms.