smallcases are baskets of stocks/ETFs bought & managed together.

The same taxation guidelines that apply for stocks also apply for smallcases.

  • If you sell your smallcase stock investments after 12 months of buying, your investments would qualify for long-term capital gains tax which is applicable at 10% of the gains, if the gains exceed Rs. 1,00,000.
  • If you sell your smallcase stocks before 12 months of holding, you will have to pay a short-term capital gains tax at the rate of 15% on the profits made (not applicable on losses)

Dividends on stocks will be taxed as per the individual's tax bracket.

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