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How are Smallcases Taxed?



Smallcase is a platform that allows you to buy and sell stocks in predetermined combinations and quantities that may follow a theme or an idea that the fund manager wishes to express.


They have taken over the equity space, with many new age investors opting for the ease and affordability being offered by this platform - for investors and fund managers.


If you worry about taxes eating at your precious smallcase gains, here is how it happens, as they are the same rules as those applicable to stocks!

  • 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.


Here are the recent FY23 tax brackets for your convenience:



(Source: Income Tax Department)


Check out our selection of Rupeeting Equity portfolios, curated by experts who have over 50 years of combined investment expertise and have overseen the management of over Rs. 50,000 crore.



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