Planning to book profits after D-Street rally? Be ready for LTCG tax

80% of the top 500 stocks above their Jan 31, 2018 price

Planning to book profits after the mouth-watering rally at Dalal Street? There is a high probability that you will have to pay long-term capital gain (LTCG) tax. Made applicable in 2018-19, LTCG is to be paid on gains made, on equity share sale, after a holding period of 12 months or more. Those earning in access of Rs 100,000 in a fiscal year have to pay 10 per cent LTCG tax. The government has set January 31, 2018 as the grandfathering date for computing LTCG. In other words, the gain will be the difference between current market price and January