New Delhi, April 3 -- In India, if you are an investor or trader in the equity markets, you must understand the interplay between long-term and short-term capital gains. This is crucial because it will help you optimise your tax liabilities.

Recent tax changes, market dynamics and regulatory updates have intensified the discussion of how these gains are treated. Let's discuss these concepts in detail.

As of fiscal year 2025-26, the capital gains in India are decided based on the holding period of the assets:

There are specific provisions in the Income Tax Act of 1961 for setting off a capital loss:

Note: The tax provisions discussed above are indicative in nature only. Please consult your tax advisor for complete clarity on these prov...