1. The
incidence of capital gains tax on different asset classes is different, and
also depends on the duration of holding of these assets.
2. For
example, if you buy equity shares or equity funds and hold them for more than 1 year, you pay long-term capital gains tax at the rate of 10% on capital gains exceeding Rs.1 lakh in a year.
3. However,
if you sell them off within 1 year of buying, you pay short-term capital gains
tax at the rate of 15%.
4. Again, if you buy debt mutual funds and hold them for more than 3 years, you pay long-term capital gains tax at the rate of 20% on capital gains after availing cost inflation indexation benefits.
5. However, if you sell them off within 1 year of buying, you pay short-term capital gains tax at the rate that is equal to the rate of income tax that you pay.
6. Similar
differences exist in other asset classes too.