Is Capital gain taxed if it's less than the Income tax bracket?


If your total tax income, which encompasses capital gains and accounts for all deductions, falls below your tax bracket, you wont be liable to pay any taxes.


Capital gains from investments such as stocks or mutual funds are subject to special tax rates (10% or 20% for long-term, and 15% for short-term). If your only source of income is capital gains and it is less than Rs.2.5 lakhs, you exempted from tax. However, if your capital gains surpass Rs.2.5 lakhs, you are obligated to pay taxes accordingly.




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