New Delhi, July 1 -- The tax treatment of equity investments depends on the type of investment, how long it is held, and whether the income is treated as capital gains or business income.

Gains from delivery-based equity shares and equity mutual funds are classified as either short-term capital gains (STCG) or long-term capital gains (LTCG) based on the holding period. However, trading activities such as intraday trading and futures & options (F&O) are taxed differently.

Let's take a look at how different investment and trading activities in the stock market are taxed.

For listed equity shares, the holding period determines whether the gains are classified as short-term or long-term capital gains.

If an investor sells the shares withi...