Capital Gain Return

Capital Gain Return

Get filed your capital gain Return -Starting with Rs 1499/-

To understand what the Capital gain sale of property is, we have to know certain following terms.

“Capital asset” means â€“

1. Property of any kind i,e land, building, house property, vehicles, patents, trademarks, leasehold rights, machinery, and jewellery. (Whether or not connected with his business or

Profession).

2. Any securities held by a Foreign Institutional Investor which has invested in such securities in accordance with the regulations made under the SEBI Act.

However “capital asset” does not include the following:

1. Any stock-in-trade (other than the securities referred to in point 2 above), consumable stores or raw material held for the purpose of business or profession;

2. All personal belongings of the person except Jewellery;

3. Agricultural land in India in a rural1 area;

4. 6½ per cent Gold Bonds, 1977, or 7 per cent Gold Bonds, 1980, or National Defence

Gold Bonds, 1980;

5. Special bearer bonds, 1981.

6. Gold Deposit Bonds issued under Gold Deposit Scheme, 1999.

“Long-term capital asset” means a capital asset held for more than 36 months immediately prior to its date of transfer.

In the case of immovable property being land, building, and house property. The period of 36 months has been reduced to 24 months.

Short term capital asset” means a capital asset held  for not more than 36 months, immediately prior to its date of transfer.

In the following cases, however, such if the asset is held for more than 12 months immediately prior to its date of transfer, then it is “long-term capital asset”.

1. Equity or preference shares in a company listed on a recognized stock exchange in India.

2. Securities (like debentures, bonds, Government securities, etc.) listed on a recognized stock exchange in India.

3. Units of UTI (whether quoted or not).

4. Unit of an equity oriented mutual fund (whether quoted or not)

5. Zero coupon bonds (whether quoted or not).

Capital gains arise whenever a capital asset is transferred (by way of sale or otherwise) by the assessee.

1.Short-term capital gains (STCG):- This capital gain arise on transfer of short term capital assets and

2.Long-term capital gains (LTCG):- This capital gain arise on transfer of Long term capital assets.

Short Term Capital Gain/ Loss â€“ Computation

                                                                                 Amount (Rs.)

Full value of consideration                                               XXX

Less: Expenses on transfer                         XXX

Cost of acquisition                                       XXX

Cost of improvement                                   XXX             XXX

Balance

Less exemptions U/s  54, 54EC, 54F, and 54B,             XXX                                                 STCG                                                                 XXX                      

Long Term Capital Gain/ Loss â€“ Computation

                                                                                  Amount (Rs.)

Full Value of Consideration                                             XXX

Less: Expenses on transfer                       XXX

Indexed cost of acquisition (ICA)              XXX

Indexed cost of improvement (ICI)            XXX             XXX

Balance                                                                         XXX        

Less: Exemption under sections

54, 54B, 54D, 54EC, 54EE, 54F, 54G,

 54GA and 54GB XX

LTCG/ LTCL                                                                  XXX

Long Term Capital Gain is taxable at 20% (excluding education cess).

Any deductions under Chapter VI-A (such as deduction under Section 80C, 80D, etc.) cannot be availed in computing tax on capital gain.

Short Term Capital Gain is taxable at normal slab rates . We need to add the STCG to our gross total income and deductions under Chapter VI-A (such as deduction under Section 80C, 80D, etc.) can be availed in computing tax on short term capital gain.

 LTCG from the sale of equity shares and equity oriented mutual funds on which Securities Transaction Tax (STT) has been paid are completely exempted from tax.

STCG from the sale of equity shares or equity oriented mutual funds on which STT is paid on sale transaction are levied at 15% (excluding education cess) instead of your normal slab rates.