Experience The NoBrokerHood Difference!

Set up a demo for the entire community

Thank You For Submitting The Form
Home / Finance / Taxes / What is Tax on Investment Income?
Q.

What is Tax on Investment Income?

view 143Views

2 Year

Comment

1 Answers

0 2022-03-29T21:08:54+00:00

Before you know what is tax on investment income you also must have a basic idea of what is Investment Income. It is the profit that one gets after investing in real estate or sales. The tax on investment income is levied at a different rate that is not similar to the tax on earned income. There are three types of investment income:

  • Interest

  • Dividends 

  • Capital gains

What is tax on investment income?

Apart from agricultural income, all incomes are taxable and so is investment income. Short-term capital gains are subject to tax following the income slab rates of the investor and the long-term capital gains are subject to tax as per Section 112 of the IT Act at 20% or 10%.

I hope I am able to provide you with a clear idea of

tax on investment income

What is short-term and long-term capital gains?

A short term capital gain results from the sale of an asset owned for one year or less but are generally taxed at a more favourable rate than salary and are subject to taxation as ordinary income. 

Some Tax Free Investments:

Several tax free incomes are-

  • Life Insurance

  • Public Provident Fund

  • New Pension Scheme

  • Pension

  • Senior citizens Saving Schemes

Investors look for options that can provide them tax-free income so these are some options that they can opt for.

Is SIP Tax-Free?

How To Pay Self Assessment Tax Online?

Flat 25% off on Home Painting
Top Quality Paints | Best Prices | Experienced Partners