When you invest via Angel One, you need to consider capital gains tax (short‑term and long‑term), STT, GST, dividend tax, TDS, and sometimes advance tax. All these follow Indian income‑tax rules and depend on how long you hold shares or mutual funds, and your total income.
What is capital gains tax on Angel One?
If you sell shares or equity funds held for less than 12 months, you pay Short‑Term Capital Gains (STCG) tax at 20%. For holdings longer than 12 months, it’s Long‑Term Capital Gains (LTCG): the first ₹1.25 lakh profit is tax‑free, then 12.5% on the rest. These rates changed after July 23, 2024 :contentReference[oaicite:0]{index=0}.
What is Securities Transaction Tax (STT)?
Every trade in equities, derivatives or equity mutual funds has STT. It varies by type: equity delivery is 0.1%, intraday 0.025%, futures 0.0125%, options 0.0625%, and commodity futures 0.01%, options 0.05% :contentReference[oaicite:1]{index=1}.
How are mutual fund investments taxed?
Equity mutual funds follow the same STCG and LTCG rules: 20% for <12 months, and 12.5% (above ₹1.25 lakh profit) for >12 months. Debt funds are taxed as per your slab for <36 months, and 20% with indexation for >36 months :contentReference[oaicite:2]{index=2}.
What is dividend tax on Angel One?
Dividend income is taxed as per your income slab after April 2020. Mutual fund dividends and stock dividends are added to your income and taxed accordingly. If dividends exceed ₹5,000 in a year, 10% TDS is deducted :contentReference[oaicite:3]{index=3}.
Do I need to pay GST or other charges?
Yes. Angel One passes on GST at 18% on brokerage, SEBI fees, and transaction charges. You'll also see stamp duty and SEBI turnover fees in your contract note :contentReference[oaicite:4]{index=4}.
When do I pay advance tax?
If your trading gains are taxable under STCG or business income, you must pay advance tax in instalments by June, September, December, and March. Missing these can lead to interest charges :contentReference[oaicite:5]{index=5}.
How can I reduce tax? (ELSS & holding period)
You can reduce taxes by holding shares/equity funds for over a year and staying under the ₹1.25 lakh LTCG limit. Investing in ELSS funds also gives ₹1.5 lakh deduction under Section 80C :contentReference[oaicite:6]{index=6}.
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