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
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?
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Authors Of The Question
What is Tax on Investment Income?
Adarsh
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2 Year
2022-03-29T20:01:15+00:00 2022-03-29T20:01:17+00:00Comment
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