| Tax impact on your dividend income |
| Dividend received on your equity investment is tax-free in your hands. |
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| Tax impact on your capital gains (sale of shares at a profit) |
| When you hold your equity investments for less than 12 months before selling them, they are considered as short-term capital assets. |
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| Setting off capital losses |
| If you have incurred a capital loss, the tax authorities allow you to use this loss to reduce taxable capital gains from another source under certain conditions. |
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