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Long Term and Short Term Capital Gain - Income Tax Calculation
We often hear the term “Capital Gains”. What is capital gain or loss? How is it classified into long term and short term? What is its treatment as far as income tax goes? Read on...
| While filling our income tax return forms, we encounter the section called “Income from Capital Gains”. Let’s understand what capital gains is, how it is classified into long term and short term, and how it is taxed. |
Capital gain (or loss) is a profit (or loss) made while selling a capital asset. Therefore, let’s start by understanding what capital asset is.
Capital Asset
Capital asset roughly means property – a house, an apartment, office space, factory, godown or a plot of land.
Agricultural land is not considered as a capital asset, unless it is situated within the limits of, or within 8 kilometers of a municipality.
Investments such as shares and bonds are also considered as capital assets.
When does a Capital Gain or Loss arise?
When the sale price of a capital asset is more than its purchase price, you incur a capital gain.
Similarly, when the sale price of a capital asset is less than its purchase price, you incur a capital loss.
(In some cases of long term capital gains, we have to consider the indexed cost of acquisition – but we’ll come to that later, while discussing long term capital gains)
Classification of Capital Gains
Capital gain is classified into two types, depending on the period of holding of the capital asset.
- Short Term Capital Gain (STCG)
- Long Term Capital Gain (LTCG)
This classification also varies depending on the type of the capital asset. So, let’s understand this classification based on the type of the capital asset.
Shares / Stocks / Equities and Equity Mutual Funds (MFs):
Short Term Capital Gain (STCG)
If shares or equity MFs are held for less than 12 months before selling, the gain arising is classified as Short Term Capital Gain.
[The only condition here is that the shares / equities should be sold on a recognized stock exchange (for example, BSE or NSE), and a securities transaction tax (STT) should be paid on it.
If the sale of shares is off-market (that is, if the sale is not on a stock exchange), the gain would be classified like that for other capital assets. More on this in later sections.]
In this case, the short term capital gain is taxed at 10% of the gain. (This would increase to 15% for FY 08-09 / AY 09-10)
(Do not understand the difference between Financial Year, Assessment Year and Previous Year? Please read "Income Tax (IT) Jargon – Financial Year (FY), Assessment Year (AY) and Previous Year (PY)")
A short term capital loss arising from sale of shares can be offset against a short term capital gain from sale of other shares, as long as both the sales occur in the same financial year.
Long Term Capital Gain (LTCG)
If shares or equity MFs are held for more than 12 months before selling, the gain arising is classified as Long Term Capital Gain.
In the case of long term capital gain arising out of the sale of shares or equity mutual funds, there is no income tax.
The long term capital gain in this case is tax free.
All Other Capital Assets
Short Term Capital Gain (STCG)
If the capital asset is held for less than 36 months before selling, the gain arising from it is classified as Short Term Capital Gain.
This short term capital gain is clubbed with your income for the year, and is taxed at a rate as per the applicable tax slabs / brackets.
Short Term Capital Gain = Sale Price - Purchase Price
This is true even for shares or equity mutual funds sold off market.
For example,when a company comes out with a buyback offer, or when a company taking over another company comes up with an open offer, and you tender your shares to the company directly, any gain arising out of this would be taxed as if the sale was of “other capital asset”, and would be clubbed with your income for the year of sale for the purpose of calculation of income tax.
(To know the current income tax slabs / brackets, please read “Income Tax (IT) Slabs / Brackets and rates”)
Long Term Capital Gain (LTCG)
If the capital asset is held for more than 36 months before selling, the gain arising from the sale is classified as Long Term Capital Gain.
In case of assets other than equity shares or equity MFs, the long term capital gain is taxed at 20%. In other words, 20% of the long term capital gain has to be paid as income tax.
(In case of debt mutual funds, the capital gain tax is 10% if the cost of acquisition is not indexed, and it is 20% if the cost of acquisition is indexed)
But how do we calculate the gain? Is it just like short term capital gain: The sale price less the purchase price?
No! And this is another place where inflation is your friend!!
(Where else is inflation your friend? To find out, please read “Settle early in life - buy a home when young”)
We know that the cost of money decreases over a period due to the effect of inflation. Thus, an amount some years back can't be compared directly with an amount today – Rs. 100 were worth a lot more in 1985 than today!
So, we first need to make the purchase price comparable to today's price. For doing this, we need to use the inflation figures from both these years.
But the Reserve Bank of India (RBI) has made our task easy here – for every year (starting in 1980), they have come up with a number. This is called the Cost Inflation Index.
The Cost Inflation Index in itself doesn't convey anything – but the increase in the number from one year to another is a representative of the change in prices (and therefore, inflation) between these years.
The purchase price that needs to be used for calculating the long term capital gains is thus called the Indexed Cost of Acquisition.
Indexed Cost of Acquisition = Actual Purchase Price * (Cost Inflation Index during the year of sale / Cost Inflation Index during the year of purchase)
Long Term Capital Gain = Sale Price - Indexed Cost of Acquisition
Also, in case of a house, you can add the cost of improvement (incurred during your ownership of the house) in the cost price of the house. Again, this cost can be indexed (and therefore, increased!).
How much capital gains tax to pay if your income is below the taxable threshold?
(To know the current income tax slabs / brackets, please read “Income Tax (IT) Slabs / Brackets and rates”)
Short Term Capital Gain
If your total income including the STCG is less than the taxable threshold, you would not have to pay any STCG tax.
If your total income excluding STCG (A) is less than the taxable threshold, but the total income including the STCG (B) is more than the taxable threshold, you would only have to pay STCG tax on the excess amount (B - taxable threshold).
Long Term Capital Gain
If your total income including the LTCG is less than the taxable threshold, you would not have to pay any LTCG tax.
If your total income excluding LTCG (A) is less than the taxable threshold, but the total income including the LTCG (B) is more than the taxable threshold, you would only have to pay LTCG tax on the excess amount (B - taxable threshold).
This is just preliminary information about Short Term and Long Term capital gains, and the income tax on them.
Please also read:
- "Long Term Capital Gains (LTCG) on Sale of a House – Calculation and Income Tax"
- How to save / avoid Long Term Capital Gain (LTCG) Tax on Sale of a House
- "Set Off and Carry Forward of Losses – Capital Gains and House Property"
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- How to fill Income Tax Return Form 1 (ITR1) - Instructions and Video Tutorial
- The stock market is falling – Time to invest?
- Residential / Commercial Property for a Non Resident Indian (NRI)
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Note: Please treat the opinion expressed here as a broad suggestion. Please consult your financial planner / investment advisor before making any investment decision.
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Author:
Prateek
Jul 24, 2008
Jul 24, 2008
excellent
After visiting your Site I am getting more hooked up to TAX and finance . Thanks Dude
Re: excellent
Thanks buddy... Feedback like this is the best encouragement for me...
And BTW, finance is quite simple to understand - you just need to know where to look :-)
And BTW, finance is quite simple to understand - you just need to know where to look :-)
Author:
Nishant BK
Aug 06, 2008
Aug 06, 2008
Sale of house within 36 months
I have purchased the a flat which was under construction in Nov 2005 at Kochi. The flat still remains under construction hence wanted to dispose and buy flat in bangalore. The kochi flat costed me 14.5 Lacs and after selling I might get 33 Lacs. Kindly advice if I need to pay any tax as I am reinvesting in a house immediately.
Thanks
Thanks
Re: Sale of house within 36 months
Hi Nishant,
If you sell your Kochi flat before Nov 2008, you would be selling it in less than 3 years (36 months), and therefore, it would be Short Term Capital Gain.
There is NO WAY to save income tax on short term capital gain. The entire amount would be clubbed with your income for this year, and would be taxed as per the IT slabs.
Since the gain is substabtial (Rs. 18.5 Lakhs), you would end up paying 30% of it as income tax.
I would recomment another strategy - please wait till Nov 2008, and sell the flat only then. In that case, the gain would be Long Term Capital Gain.
And then, if you invest this amount in another house, it would be TOTALLY exempt from incomr tax.
Thus, you would end up saving around Rs. 5.25 Lakhs (30% of Rs. 18.5 Lakhs) in income tax.
To know more details about saving tax by investing the LTCG in another house, please read "How to save / avoid Long Term Capital Gain (LTCG) Tax on Sale of a House".
Author:
venkat
Jan 05, 2009
Jan 05, 2009
stcg & ltcg
dear sir,
i have the following questions wrt stcg & ltcg-
stcg
1. shares & mf = is the period less than or equal to 1 year or just less than 1 year. ie if i but shares on 15 jan 2008 & sell it on 15 jan 2009, would that be termed as stcg or ltcg
2. property (land & house) = is the period less than or equal to 3 years of just less than 3 years. ie if i buy a house on 15 jan 2008 and sell it on 15 jan 2011 then would that be termed as stcg or ltcg
ltcg
1.shares & mf = is the period greater than or equal to 1 year or just greater than 1 year. ie if i but shares on 15 jan 2008 & sell it on 15 jan 2009, would that be termed as ltcg or stcg
2. property (land & house) = is the period greater than or equal to 3 years of just greater than 3 years. ie if i buy a house on 15 jan 2008 and sell it on 15 jan 2011 then would that be termed as ltcg or stcg
thanks
i have the following questions wrt stcg & ltcg-
stcg
1. shares & mf = is the period less than or equal to 1 year or just less than 1 year. ie if i but shares on 15 jan 2008 & sell it on 15 jan 2009, would that be termed as stcg or ltcg
2. property (land & house) = is the period less than or equal to 3 years of just less than 3 years. ie if i buy a house on 15 jan 2008 and sell it on 15 jan 2011 then would that be termed as stcg or ltcg
ltcg
1.shares & mf = is the period greater than or equal to 1 year or just greater than 1 year. ie if i but shares on 15 jan 2008 & sell it on 15 jan 2009, would that be termed as ltcg or stcg
2. property (land & house) = is the period greater than or equal to 3 years of just greater than 3 years. ie if i buy a house on 15 jan 2008 and sell it on 15 jan 2011 then would that be termed as ltcg or stcg
thanks
Author:
venkat
Jan 05, 2009
Jan 05, 2009
how to calculate ltcg & stcg
dear sir - i have some comments on this article
stcg rate
1. shares (assuming stt paid) & equity mf - 15%
2. debt mf - taxed at slab rate of the individual
3. property (land & house) - is the rate 30% for this case or is it added to income and taxed as per the slab rate?
ltcg rate
1. shares (assuming stt paid) & equity mf - nil
2. debt mf - taxed 20% with indexation and 10% without indexation (please correct me if i am wrong)
3. property(house & land) - 20% after indexation. indexation is must.
please correct me if i am wrong with the above mentioned points
stcg rate
1. shares (assuming stt paid) & equity mf - 15%
2. debt mf - taxed at slab rate of the individual
3. property (land & house) - is the rate 30% for this case or is it added to income and taxed as per the slab rate?
ltcg rate
1. shares (assuming stt paid) & equity mf - nil
2. debt mf - taxed 20% with indexation and 10% without indexation (please correct me if i am wrong)
3. property(house & land) - 20% after indexation. indexation is must.
please correct me if i am wrong with the above mentioned points
Author:
Giri
Jan 16, 2009
Jan 16, 2009
Setting off Short term losses on shares
Hello,
Thanks in advance.
Can I setoff my short term losses incurred on sale of shares thru Stock exchange(NSE/BSE), having paid STT, against the Long term Capital Gain resulted by selling the land(site).
Also, please clarify whether I can adjust the Long term capital losses resulting due to sale of shares against the Long term Capital gain resulted due to sale of land(site).
Regards,
Giri
Thanks in advance.
Can I setoff my short term losses incurred on sale of shares thru Stock exchange(NSE/BSE), having paid STT, against the Long term Capital Gain resulted by selling the land(site).
Also, please clarify whether I can adjust the Long term capital losses resulting due to sale of shares against the Long term Capital gain resulted due to sale of land(site).
Regards,
Giri
Re: how to calculate ltcg & stcg
Hi Venkat,
The STCG from sale of property would be added to your income, and would be taxed at your applicable slab rates.
The STCG from sale of property would be added to your income, and would be taxed at your applicable slab rates.
Re: Setting off Short term losses on shares
Hi Giri,
Yes, you can setoff your short term loss incurred on sale of shares against the Long term Capital Gain from selling land.
Yes, you can adjust the Long term capital loss from sale of shares against the Long term Capital gain from the sale of land.
For more details on set off and carry forward of capital gains, please read "Set Off and Carry Forward of Losses – Capital Gains and House Property".
Author:
Manikandan A
Jan 21, 2009
Jan 21, 2009
set off the capital loss..
Re: set off the capital loss..
Hi Manikandan,
A short term loss can be set off against any short term (or long term) gain in the same financial year.
A short term loss can be set off against any short term (or long term) gain in the same financial year.
Author:
Chander Kant
Feb 12, 2009
Feb 12, 2009
Status of long term Fixed Deposites?
Sir,
What is the status of FDs with banks. Does they fall in All Other Capital Assets category and tax calculation on FDs are same as this category?
What is the status of FDs with banks. Does they fall in All Other Capital Assets category and tax calculation on FDs are same as this category?
Re: Status of long term Fixed Deposites?
Hi Chander Kant,
Bank FDs are not considered as capital assets.
As an aside, interest earned on bank FDs is fully taxable.
Bank FDs are not considered as capital assets.
As an aside, interest earned on bank FDs is fully taxable.
Author:
shekar
Feb 27, 2009
Feb 27, 2009
is it taxable
Date of purchase of land oct 8th 2007
Date of sale of land mar 10th 2008
Aual price for purchase 600000
Actual price for sale 956000
the above information is as per Sale Deed
actual purchase is Rs.600000/-
but actual sale value received is Rs.600000/- only.
For the conveyance of purchaser the applicant is agreed for notional sale value for Rs.946000/-
but now the applicant is taxable as short term capital gain of Rs.346000/- (956000-600000)
Thank you.....,
Date of sale of land mar 10th 2008
Aual price for purchase 600000
Actual price for sale 956000
the above information is as per Sale Deed
actual purchase is Rs.600000/-
but actual sale value received is Rs.600000/- only.
For the conveyance of purchaser the applicant is agreed for notional sale value for Rs.946000/-
but now the applicant is taxable as short term capital gain of Rs.346000/- (956000-600000)
Thank you.....,
Re: is it taxable
Hi Shekar,
Your profit from the sale of land (Rs. 3,56,000) would definitely be taxable. Since it is from sale of land, it is Capital Gain.
Since you held the land for less than 3 years, it is short term capital gain. It would be added to your income, and would be taxed according to the applicable IT slabs.
But I fail to understand why the agreement was made for Rs. 9,56,000 when the sale was only for Rs. 6,00,000: For income tax purpose, the agreement price would prevail, and you would need to pay tax on the profit as explained above.
And by the way, I hope you have paid the tax on this profit - it was supposed to be paid by 15th March 2008 in your case.
If not, you would need to pay penal interest on it - and since the amount is large, the interest would also be significant.
Please read "Missed the income tax return (ITR) filing deadline of 31st July" to know more about late payment of taxes.
Author:
adarsh
Feb 28, 2009
Feb 28, 2009
capital gain scheme deposite account
i have recieved capital gain of rs 2.5 lakh from the sale proceeds of open residential plot. i intend to deposite the amount capital gain scheme deposite account.
Whether i will get tax benifit, if i invest this amount in the property to be purchased by my son or else can i join the property to be purchased as a co owener to gert the tax benifit.
Whether i will get tax benifit, if i invest this amount in the property to be purchased by my son or else can i join the property to be purchased as a co owener to gert the tax benifit.
Re: capital gain scheme deposite account
Hi Adarsh,
You would not get the tax benefit if you give the amount to your son for the purchase of the property. You need to be the holder of the property.
Also, since the gain is from capital gain from land, you would need to invest the entire sale proceed in the house - and not just the amount of the capital gain.
You would not get the tax benefit if you give the amount to your son for the purchase of the property. You need to be the holder of the property.
Also, since the gain is from capital gain from land, you would need to invest the entire sale proceed in the house - and not just the amount of the capital gain.
Author:
Somani P N
Mar 09, 2009
Mar 09, 2009
Capital Gain on Equities, Equity MF & Debt Mutual Fund
Please explain/inform the set off rules in following cases for Assessment yr 2009/10
1) ST gain in Debt mutual Fund & ST loss in Equity MF & Equity market (with STT)
2) reverse of first
3) LT gain in Debt Mutual Fund & LT loss in Equity MF & Equity market (With STT)
4) reverse of third.
5) ST gain in Debt MF & long term loss in Equity MF & Equity Market (With STT)
Please reply
Thanks
1) ST gain in Debt mutual Fund & ST loss in Equity MF & Equity market (with STT)
2) reverse of first
3) LT gain in Debt Mutual Fund & LT loss in Equity MF & Equity market (With STT)
4) reverse of third.
5) ST gain in Debt MF & long term loss in Equity MF & Equity Market (With STT)
Please reply
Thanks
Re: Capital Gain on Equities, Equity MF & Debt Mutual Fund
Hello,
1. Can be set off
2. Can be set off
3. Since LT gain in equities and equity MFs is tax free, LT loss in them can't be set off against other losses or be carried forward.
So, this is not possible.
4. LT gain in equities and equity MFs is tax free. So, there is no question of setting off LT gains in them against other losses.
5. Same as 3 above.
1. Can be set off
2. Can be set off
3. Since LT gain in equities and equity MFs is tax free, LT loss in them can't be set off against other losses or be carried forward.
So, this is not possible.
4. LT gain in equities and equity MFs is tax free. So, there is no question of setting off LT gains in them against other losses.
5. Same as 3 above.
Author:
gopal
Mar 15, 2009
Mar 15, 2009
Indexed capital appreciation-method of calculation
I had purchased a site in 1987, for Rs1.5 lakhs, and sold it in 2007.
Please let me know how to calculate the Indexed capital value in 2007, to sacertain my capital gains tax liability.
Please let me know how to calculate the Indexed capital value in 2007, to sacertain my capital gains tax liability.
Hi Gopal,
You need to follow the procedure as described in the article "Long Term Capital Gains (LTCG) on Sale of a House – Calculation and Income Tax".
Indexation factor = 551 / 150 = 3.673
Thus, Indexed cost of acquisition = Rs. 5,51,000.
Author:
Shans
Mar 25, 2009
Mar 25, 2009
Capital gain tax when income below threshold
sir,
is short term capital gain from Equity Trading is taxable in flat rate (15%) irrespctive of your income or it can be clubbed with total income?
total income Rs 125000 and capital gain Rs 25000/- so no tax liability .
is this right? or i have to pay tax on Rs 25000 ? please clarify?
is short term capital gain from Equity Trading is taxable in flat rate (15%) irrespctive of your income or it can be clubbed with total income?
total income Rs 125000 and capital gain Rs 25000/- so no tax liability .
is this right? or i have to pay tax on Rs 25000 ? please clarify?
Re: Capital gain tax when income below threshold
Hi Shans,
The short term capital gain is at the flat rate of 15%, but it is NOT irrespective of your income.
If your income is below the threshold of taxation (less than Rs. 1.5 Lakhs for a male this year), the capital gain is not taxed to the extent that your income is less than the threshold.
Example:
Income = Rs. 1,25,000
Short term Capital gain = Rs. 35,000
STCG tax @ 15% would be applicable only on:
Rs. 35,000 - (Rs. 1,50,000 - Rs. 1,25,000)
= Rs. 10,000.
In your example (total income Rs 125000 and capital gain Rs 25000/-), there would be no tax liability.
The short term capital gain is at the flat rate of 15%, but it is NOT irrespective of your income.
If your income is below the threshold of taxation (less than Rs. 1.5 Lakhs for a male this year), the capital gain is not taxed to the extent that your income is less than the threshold.
Example:
Income = Rs. 1,25,000
Short term Capital gain = Rs. 35,000
STCG tax @ 15% would be applicable only on:
Rs. 35,000 - (Rs. 1,50,000 - Rs. 1,25,000)
= Rs. 10,000.
In your example (total income Rs 125000 and capital gain Rs 25000/-), there would be no tax liability.
Author:
Sachin
Mar 30, 2009
Mar 30, 2009
Tax liability due to LTCG only
Dear Sir,
My Tax liablity is arising only because of longterm capital gain for AY 2009-10, So i wanted to know whether the tax to be paid is @20% or 22.66%. ( Inclusive of Surcharge & Cess ).
and Whether Advance to be paid on the same?
My Tax liablity is arising only because of longterm capital gain for AY 2009-10, So i wanted to know whether the tax to be paid is @20% or 22.66%. ( Inclusive of Surcharge & Cess ).
and Whether Advance to be paid on the same?
Re: Tax liability due to LTCG only
Hi Sachin,
Tax on LTCG is treated separately from tax on all other incomes. Therefore, you would need to pay tax on it even if you have no other taxable income.
And yes, you would need to pay the cess (and surcharge if it is over Rs. 10 lakhs).
It is advisable to pay the tax on LTCG as and when you have the gain - thus, it is better to pay advance tax for it.
Tax on LTCG is treated separately from tax on all other incomes. Therefore, you would need to pay tax on it even if you have no other taxable income.
And yes, you would need to pay the cess (and surcharge if it is over Rs. 10 lakhs).
It is advisable to pay the tax on LTCG as and when you have the gain - thus, it is better to pay advance tax for it.
Author:
Sachin
Mar 31, 2009
Mar 31, 2009
54F
Dear Sir,
Wanted to have Clarification on the Time periodof 3 Years for Construction in Sec 54F?
Sir,
Time period of 3years in Sec 54F is to buy the Site/Plot and then construct, or is there any specific time to buy the Site/Plot, and then a different specific time to costruct the house?
Time to Deposit in GAGS under Sec 54F?
The interpretation of duedate for filing of return U/S 139, is interpretated to all sub sections of 139, So sir 139(4) allows to deposit in CAGS, a time of one year form the end of the relevant AY.
So Sir can you Clarify when to deposit in CAGS for AY 2009-10?
Wanted to have Clarification on the Time periodof 3 Years for Construction in Sec 54F?
Sir,
Time period of 3years in Sec 54F is to buy the Site/Plot and then construct, or is there any specific time to buy the Site/Plot, and then a different specific time to costruct the house?
Time to Deposit in GAGS under Sec 54F?
The interpretation of duedate for filing of return U/S 139, is interpretated to all sub sections of 139, So sir 139(4) allows to deposit in CAGS, a time of one year form the end of the relevant AY.
So Sir can you Clarify when to deposit in CAGS for AY 2009-10?
Re: 54F
Hi Sachin,
The time duration is for purchase of plat and construction of the house.
I am not sure if I understand your other question correctly. Can you please rephrase it? What do you mean by GAGS / CAGS?
The time duration is for purchase of plat and construction of the house.
I am not sure if I understand your other question correctly. Can you please rephrase it? What do you mean by GAGS / CAGS?
Using proceeds of sale of older house purchased in 2001-02 to part pay house loan for new house (2008-09)
I would like to know my tax liability if I use proceeds of house sale to part pay my outstanding housing loan taken in 2008-09.
Re: Using proceeds of sale of older house purchased in 2001-02 to part pay house loan for new house (2008-09)
Hi Rangarajan,
Using proceeds of sale of old house to pay / part-pay a home loan does not result in any income tax benefit.
You need to utilize the amount to actually buy a new house in order to save income tax on long term capital gain.
Please check out "How to save / avoid Long Term Capital Gain (LTCG) Tax on Sale of a House" for more on this.
Author:
Trader
Apr 20, 2009
Apr 20, 2009
Capital gain calculation
I was looking out for a capital gains tax calculator, but could not find one. Please let me know if it is available on your site or refer to some other reliable site.
Thanks
Thanks
Re: Capital gain calculation
Hi,
Although there is no calculator, you can calculate the capital gain or loss as described in this article.
Although there is no calculator, you can calculate the capital gain or loss as described in this article.
Author:
Anuj
Apr 20, 2009
Apr 20, 2009
Capital gain on gifted bonus shares
Greetings !!
This question is about IT on shares gifted by my wife to me. In turn now I intend to sell them.
Please advise how the tax eligibility /computation works.
Thank you & Regards,
Anuj HR
This question is about IT on shares gifted by my wife to me. In turn now I intend to sell them.
Please advise how the tax eligibility /computation works.
Thank you & Regards,
Anuj HR
Re: Capital gain on gifted shares
Hi Anuj,
You can calculate the capital gain or loss as described in this article. The cost price of shares for you in this case is the price at which your wife purchased them.
You can calculate the capital gain or loss as described in this article. The cost price of shares for you in this case is the price at which your wife purchased them.
Author:
siva
May 12, 2009
May 12, 2009
re: long term capital gain on sale of land
hi,
I have purchased a site in september 2003, for Rs 5.1 lakhs, and am selling it now 2009 for 25 lakhs.
i want to know indexed cost of aquisition & the final long term gain on which i need to pay the tax?
can i get tax exemption if i purchase a new house using the money.
please give me the calculations in detail.
thanx in advance.
I have purchased a site in september 2003, for Rs 5.1 lakhs, and am selling it now 2009 for 25 lakhs.
i want to know indexed cost of aquisition & the final long term gain on which i need to pay the tax?
can i get tax exemption if i purchase a new house using the money.
please give me the calculations in detail.
thanx in advance.
Re: re: long term capital gain on sale of land
Hi Siva,
You can calculate this as described in the article "Long Term Capital Gains (LTCG) on Sale of a House – Calculation and Income Tax".
Yes, you can save tax if you invest the amount in a new house. Please check out "How to save / avoid Long Term Capital Gain (LTCG) Tax on Sale of a House" for all information on saving LTCG tax.
Author:
Anuj
Jun 14, 2009
Jun 14, 2009
Lands in Agricultural and Afforestation Zone
Pls advise whether lands falling in Agricultural Zone in Maharashtra would be considered a capital asset and accordingly would proceeds from the sale of such lands be subject to short or long term capital gains tax?
Also, will such lands be subject to wealth tax? Please answer the same questions for land falling in Afforestation zone in Maharashtra.
Thank you
Also, will such lands be subject to wealth tax? Please answer the same questions for land falling in Afforestation zone in Maharashtra.
Thank you
Author:
Rachna Rane
Jun 16, 2009
Jun 16, 2009
Capital Gains in India of NR
How to treat Capital Gains of Non Resident when income is below Taxable limit?
Re: Lands in Agricultural and Afforestation Zone
Hi Anuj,
Agricultural land is not considered as a capital asset, unless it is situated within the limits of, or within 8 kilometers of a municipality.
Therefore, your land should not be considered as a capital asset.
I am not too proficient with the provisions of the wealth tax act when it comes to agri land, so wouldn't be able to help you there. Sorry!
Agricultural land is not considered as a capital asset, unless it is situated within the limits of, or within 8 kilometers of a municipality.
Therefore, your land should not be considered as a capital asset.
I am not too proficient with the provisions of the wealth tax act when it comes to agri land, so wouldn't be able to help you there. Sorry!
Re: Capital Gains in India of NR
Hi Rachna,
If the income is below the taxable limit including the capital gains amount - for resident Indians or NRIs - the capital gains amount would not be taxed.
If the income is below the taxable limit including the capital gains amount - for resident Indians or NRIs - the capital gains amount would not be taxed.
Author:
vikas kakkar
Jun 25, 2009
Jun 25, 2009
Should i need to show STCL for this year Tax file return
Pls advise whether what is applicable to me
I purchase share of Rs. 1,00,000 on Jan 2009 and sold all share on May 2009 with 20,000 Rs. Loss. So I want to know
(1) I have STC Loss of 20K , How should i show this while file income tax return for finance year 2008-2009 .
(2) What are the documents I need to take from my share broker ( Indiabulls ) which may require to file return (to calculate profit/loss) and may need to produce Income tax Assessing officer in future.
Thanks
Vikas kakkar
I purchase share of Rs. 1,00,000 on Jan 2009 and sold all share on May 2009 with 20,000 Rs. Loss. So I want to know
(1) I have STC Loss of 20K , How should i show this while file income tax return for finance year 2008-2009 .
(2) What are the documents I need to take from my share broker ( Indiabulls ) which may require to file return (to calculate profit/loss) and may need to produce Income tax Assessing officer in future.
Thanks
Vikas kakkar
Author:
vikas kakkar
Jun 25, 2009
Jun 25, 2009
vikas
Adding to pervious questiong
This finane year (2008-09) i have income from
(a) Salary
(B) Bank Interest
(C) Divident from share ( Rs. 2000 )
(D) Loss ( Short term capical loss)
Which ITR i need to fill for income tax .
Thans
vikas kakkar
This finane year (2008-09) i have income from
(a) Salary
(B) Bank Interest
(C) Divident from share ( Rs. 2000 )
(D) Loss ( Short term capical loss)
Which ITR i need to fill for income tax .
Thans
vikas kakkar
Author:
Vishnu
Jun 28, 2009
Jun 28, 2009
Long Term Capital Loss on Equity MF
Re: Should i need to show STCL for this year Tax file return
Hi Vikas,
1. This loss is after 31st Mar 2009, so it is in FY 2009-10. You would show this in next year's IT return.
2. A summary of transactions or contract notes for the transactions should suffice.
You should file ITR2.
1. This loss is after 31st Mar 2009, so it is in FY 2009-10. You would show this in next year's IT return.
2. A summary of transactions or contract notes for the transactions should suffice.
You should file ITR2.
Re: Long Term Capital Loss on Equity MF
Hi Vishnu,
No. Since LTCG on equities is not taxed, it can not be carried forward and set off against a gain.
No. Since LTCG on equities is not taxed, it can not be carried forward and set off against a gain.
Author:
Vishnu
Jun 30, 2009
Jun 30, 2009
Re: Long Term Capital Loss on Equity MF
Hi Raggav,
You replied to me saying that I cannot carry forward the loss occured on LTCG (equity MFs)
So, which ITR should I file?
My income / loss includes only the below
1) Salary
2) Interest
3) Long Term Capital Loss on Equity MFS
Thanks,
Vishnu
You replied to me saying that I cannot carry forward the loss occured on LTCG (equity MFs)
So, which ITR should I file?
My income / loss includes only the below
1) Salary
2) Interest
3) Long Term Capital Loss on Equity MFS
Thanks,
Vishnu
Re: Re: Long Term Capital Loss on Equity MF
Hi Vishnu,
Please file ITR2.
Please file ITR2.
Author:
Vishnu
Jul 04, 2009
Jul 04, 2009
Re: Re: Long Term Capital Loss on Equity MF
Hi Raagv,
Thanks for the quick response.
My income / loss includes only the below
1) Salary
2) Interest
3) Long Term Capital Loss on Equity MFS (No gains)
Should I still choose ITR2 as you suggested (over ITR1).
Please confirm.
Thanks for the quick response.
My income / loss includes only the below
1) Salary
2) Interest
3) Long Term Capital Loss on Equity MFS (No gains)
Should I still choose ITR2 as you suggested (over ITR1).
Please confirm.
Author:
vikram
Jul 05, 2009
Jul 05, 2009
short term capital gain
I would like to know the tax treatment on the short term capital gain made by me
My total income is Rs.16000 (including Rs.30,000) as made on short term capital gain made on shares... please let me know the tax treatment.
My total income is Rs.16000 (including Rs.30,000) as made on short term capital gain made on shares... please let me know the tax treatment.
Re: Re: Re: Long Term Capital Loss on Equity MF
Hi Vishnu,
No problem!
Since you have something (LT capital loss) under the head "Income from Capital Gains", you would need to file ITR2.
ITR1 only has income from salary & other income.
No problem!
Since you have something (LT capital loss) under the head "Income from Capital Gains", you would need to file ITR2.
ITR1 only has income from salary & other income.
Re: short term capital gain
Hi Vikram,
Your question is not very clear....
How much is the capital gain? How much is the total income?
"My total income is Rs.16000 (including Rs.30,000)" is confusing!
If your income including the short term capital gain is less than the taxable threshold, you would not need to pay any tax on the STCG.
Your question is not very clear....
How much is the capital gain? How much is the total income?
"My total income is Rs.16000 (including Rs.30,000)" is confusing!
If your income including the short term capital gain is less than the taxable threshold, you would not need to pay any tax on the STCG.
Author:
Vikram
Jul 09, 2009
Jul 09, 2009
Short term capital gain on shares
Hi raagvamd,
i m happy to see your reply, by mistake i had typed Rs.16,000 ; it should have been Rs.1,60,000.
My question was if my total income is Rs.1,60,000 , which includes a short term capital gain for Rs.30,000. what is the tax treatment?
Another question ?
Would the income tax authorities would be able to see my share transactions if i do not disclose the share transactions while filing IT returns.
Another question?
Is it necessary to file IT return though i hold a pan card but
my annual income is not taxable. please advise.
i m happy to see your reply, by mistake i had typed Rs.16,000 ; it should have been Rs.1,60,000.
My question was if my total income is Rs.1,60,000 , which includes a short term capital gain for Rs.30,000. what is the tax treatment?
Another question ?
Would the income tax authorities would be able to see my share transactions if i do not disclose the share transactions while filing IT returns.
Another question?
Is it necessary to file IT return though i hold a pan card but
my annual income is not taxable. please advise.
Author:
Partha
Jul 11, 2009
Jul 11, 2009
STCL on equity shares - how to carry forward to next year
Hi,
I have net loss in short term capital losses. I understand that we cannot set it off against other head like house income or salary income. I read somewhere that we can carry forward the short term capital losses for next 6 to 7 years so that these can be set off against future years gains.
I want to know if we need to do anything extra in the current year returns to ensure these losses are carried forward. Please suggest.
Regards,
Partha.
I have net loss in short term capital losses. I understand that we cannot set it off against other head like house income or salary income. I read somewhere that we can carry forward the short term capital losses for next 6 to 7 years so that these can be set off against future years gains.
I want to know if we need to do anything extra in the current year returns to ensure these losses are carried forward. Please suggest.
Regards,
Partha.
Author:
Dhanaprakash
Jul 11, 2009
Jul 11, 2009
How to fill ITR-2 with Long Term Capital Loss from shares
Hi,
Your site is amazing for gaining knowledge personal tax. I appreciate your dediation, open-ness and helping hand.
I need a clarification on how to fill ITR-2 form with Long Term Capital Loss from shares trading. I know that this loss can't be set-off/carried forward. But I feel, we have to declare this at ITR-2.
But EI section does not allow -ve values and I am not sure if this has to be declared at CG-OS sheet. If yes, can you please clarify me on what should be filled at 2d and 4? I am confused on repetition of Exemption sections 54/54B.... And how to declare the loss which can't be setoff
Regards,
Dhana Prakash
Your site is amazing for gaining knowledge personal tax. I appreciate your dediation, open-ness and helping hand.
I need a clarification on how to fill ITR-2 form with Long Term Capital Loss from shares trading. I know that this loss can't be set-off/carried forward. But I feel, we have to declare this at ITR-2.
But EI section does not allow -ve values and I am not sure if this has to be declared at CG-OS sheet. If yes, can you please clarify me on what should be filled at 2d and 4? I am confused on repetition of Exemption sections 54/54B.... And how to declare the loss which can't be setoff
Regards,
Dhana Prakash
Author:
Bina Trikha
Jul 12, 2009
Jul 12, 2009
Income Tax on Long Term Capital Gains
Hello Raagvaamd,
Regret you have not replied yet to my query on the subject posted few days back. Meanwhile I notice a discrepancy in your replies to Sachin's Query of Mar 30 & Rachna Rane of June 16 above. Kindly reconfirm, if one's gross total income including salary,interest,LTCG on Debt MF in A.Y 09-10 is below taxable limit, does one need to pay tax on LTCG at Special rates(10% without indexation & 20% with indexation) ?
Will appreciate prompt reply posted on the site which is really very useful.
Regret you have not replied yet to my query on the subject posted few days back. Meanwhile I notice a discrepancy in your replies to Sachin's Query of Mar 30 & Rachna Rane of June 16 above. Kindly reconfirm, if one's gross total income including salary,interest,LTCG on Debt MF in A.Y 09-10 is below taxable limit, does one need to pay tax on LTCG at Special rates(10% without indexation & 20% with indexation) ?
Will appreciate prompt reply posted on the site which is really very useful.
Re: Short term capital gain on shares
Hi Vikram,
1. In this case, you would need to pay tax only on Rs. 10,000 (Rs. 1,60,000 - Rs. 1,50,000 upto which there is no income tax) as per the slab - that is, 10%.
2. Yes, they can, as your PAN number would be available with your broker.
3. no, you needn't file an income tax return just because you have a PAN. You need to file IT return only if your annual income is taxable.
1. In this case, you would need to pay tax only on Rs. 10,000 (Rs. 1,60,000 - Rs. 1,50,000 upto which there is no income tax) as per the slab - that is, 10%.
2. Yes, they can, as your PAN number would be available with your broker.
3. no, you needn't file an income tax return just because you have a PAN. You need to file IT return only if your annual income is taxable.
Re: STCL on equity shares - how to carry forward to next year
Hi Partha,
No, you need not do anything extra. Just mention the losses in the schedule CG, CYLA and CFL.
No, you need not do anything extra. Just mention the losses in the schedule CG, CYLA and CFL.
Re: How to fill ITR-2 with Long Term Capital Loss from shares
Hi Dhanaprakash,
Thanks a lot for your kind words... It is really encouraging...
You need to declare this in schedule CG, section B.
Thanks a lot for your kind words... It is really encouraging...
You need to declare this in schedule CG, section B.
Author:
Kiran
Jul 15, 2009
Jul 15, 2009
Long term capital gains on sale of securities
Hi Raagvaamd,
Please guide me how to fill in he Long term capital gains on sale of securities in the ITR-2 form.
If we have to fill it in the section
In Schedule CG -> B Long term capital gain -> 3 Asset in the case of others where proviso under section 112(1) is applicable
then it will add to the total taxable income according to the form. But it is not taxable since it is held for more than 12 months.
There is one section in the Schedule EI -> 3 Long-term capital gains from transactions on which Securities Transaction Tax is paid, but it is never seemed to be refered anywhere for tax deduction purposes.
- Kiran
Please guide me how to fill in he Long term capital gains on sale of securities in the ITR-2 form.
If we have to fill it in the section
In Schedule CG -> B Long term capital gain -> 3 Asset in the case of others where proviso under section 112(1) is applicable
then it will add to the total taxable income according to the form. But it is not taxable since it is held for more than 12 months.
There is one section in the Schedule EI -> 3 Long-term capital gains from transactions on which Securities Transaction Tax is paid, but it is never seemed to be refered anywhere for tax deduction purposes.
- Kiran
Author:
Dhanaprakash
Jul 15, 2009
Jul 15, 2009
How to fill ITR-2 with Long Term Capital Loss from shares
Hi Raagav,
Thank you very much for your response on the same subject. I have Long Term Capital Loss on shares which I can't carry forward and set off against anything. If I fill this information at CG Section B, at CFL sheet it is shown is current loss which would be carried forward. This is wrong rt?
Can you please help me on this. Usually Long Term Capital Gains on shares will be filled at EI only as they are totally tax exempt. But I can't specify the loss at EI similarly as it doesn't accept negative values.
I sincerely request your help on where fill Long Term Capital Gain loss on shares which can't be carried forward.
Regards,
Dhana Prakash
Thank you very much for your response on the same subject. I have Long Term Capital Loss on shares which I can't carry forward and set off against anything. If I fill this information at CG Section B, at CFL sheet it is shown is current loss which would be carried forward. This is wrong rt?
Can you please help me on this. Usually Long Term Capital Gains on shares will be filled at EI only as they are totally tax exempt. But I can't specify the loss at EI similarly as it doesn't accept negative values.
I sincerely request your help on where fill Long Term Capital Gain loss on shares which can't be carried forward.
Regards,
Dhana Prakash
Re: Income Tax on Long Term Capital Gains
Hi Bina,
I'm sorry - I don't see any earlier comment left by you. Can you please re-post the comment?
I appreciate your concern regarding the discrepancy. Here is the clarification:
If your income including LTCG is below taxable threshold, you do not need to pay any LTCG tax.
If your income other than LTCG is below taxable threshold, and is becoming taxable only due to the LTCG, you need to pay LTCG tax only on the excess LTCG.
Income: X
LTCG: Y
X is less than taxable threshold
X+Y is more than taxable threshold
Then,
LTCG tax is payable only on:
Y - (taxable threshold - X)
That is, LTCG tax is payable only on:
LTCG - (taxable threshold - all other income).
If X+Y is less than taxable threshold, no LTCG tax is payable.
I'm sorry - I don't see any earlier comment left by you. Can you please re-post the comment?
I appreciate your concern regarding the discrepancy. Here is the clarification:
If your income including LTCG is below taxable threshold, you do not need to pay any LTCG tax.
If your income other than LTCG is below taxable threshold, and is becoming taxable only due to the LTCG, you need to pay LTCG tax only on the excess LTCG.
Income: X
LTCG: Y
X is less than taxable threshold
X+Y is more than taxable threshold
Then,
LTCG tax is payable only on:
Y - (taxable threshold - X)
That is, LTCG tax is payable only on:
LTCG - (taxable threshold - all other income).
If X+Y is less than taxable threshold, no LTCG tax is payable.
Re: Long term capital gains on sale of securities
Hi Kiran,
You are right, you need to put it in Schedule EI -> 3 Long-term capital gains from transactions on which Securities Transaction Tax is paid.
I am not sure what you mean by "it is never seemed to be referred anywhere for tax deduction purposes". I do not understand you concern...
Exempt Income is not included in taxable income at all, so why do you need a deduction?
You are right, you need to put it in Schedule EI -> 3 Long-term capital gains from transactions on which Securities Transaction Tax is paid.
I am not sure what you mean by "it is never seemed to be referred anywhere for tax deduction purposes". I do not understand you concern...
Exempt Income is not included in taxable income at all, so why do you need a deduction?
Re: How to fill ITR-2 with Long Term Capital Loss from shares
Hi Dhanaprakash,
You should mention the loss in schedule CG Section B, but not in schedules CYLA and CFL.
You should mention the loss in schedule CG Section B, but not in schedules CYLA and CFL.
Author:
Kiran
Jul 16, 2009
Jul 16, 2009
Re: Long term capital gains on sale of securities
Thanks for the reply Raagv, that clarifies things.
My only concern was if we enter it in Schedule CG then it becomes taxable and we need to deduct it somewhere in the form. If we are not making the entries in CG then this question will not arise at all.
Also, at the end of the CG Schedule there is section D-> Information on accural/recepit of capital gains. So I belive we don't have to fill this either for the long term capital gains for securities. Please confirm.
Also, I was browsing through the site and your articles and found that very useful. Thanks a lot for keeping this site running!
Regards,
Kiran
My only concern was if we enter it in Schedule CG then it becomes taxable and we need to deduct it somewhere in the form. If we are not making the entries in CG then this question will not arise at all.
Also, at the end of the CG Schedule there is section D-> Information on accural/recepit of capital gains. So I belive we don't have to fill this either for the long term capital gains for securities. Please confirm.
Also, I was browsing through the site and your articles and found that very useful. Thanks a lot for keeping this site running!
Regards,
Kiran
Author:
RAJEEV
Jul 16, 2009
Jul 16, 2009
STCG
Hi guys,
my income from salary is around 6 lacs. Last financial year here i made short term gain of 50,000/- from shares. according to rules i have to pay 15% tax on STCG for shares. i wanted to know whether after deducting 15% from 50,000,will the rest of the amount be added to my taxable income( from salary), then depending upon slab, again i have to pay tax on the shares amount( it will come around 42,500/-)??
pl. help me out.
my income from salary is around 6 lacs. Last financial year here i made short term gain of 50,000/- from shares. according to rules i have to pay 15% tax on STCG for shares. i wanted to know whether after deducting 15% from 50,000,will the rest of the amount be added to my taxable income( from salary), then depending upon slab, again i have to pay tax on the shares amount( it will come around 42,500/-)??
pl. help me out.
Short Term Capital Gain
I have same situation like Mr. Rajeev. Pl clarify wheher I have to pay TAX on my balance STCG ( after deducting 15% ). How and where to show in ITR 4?
Author:
Rams
Jul 18, 2009
Jul 18, 2009
Short Term Cap Gain
Hi Raagav,
I was happy to see your response so clearly. I have a query. If I am having a salary income of 6Lacs and TDS is already done for that and have some Rs 3000/- short term capital gains.
1. I suppose I need to fill in CG-OS (Correct me if wrong). WHich specific column do i need to fill?
2. If I dont need to pay tax for LTCG, why should I declare it and if needed where in CG-OS I need to fill?
3. How do i go ahead paying the tax for the STCG? Where are the details to be entered for that? (I suppose that I need to pay 15% of 3000/-. Clarify).
Thanks in advance.
I was happy to see your response so clearly. I have a query. If I am having a salary income of 6Lacs and TDS is already done for that and have some Rs 3000/- short term capital gains.
1. I suppose I need to fill in CG-OS (Correct me if wrong). WHich specific column do i need to fill?
2. If I dont need to pay tax for LTCG, why should I declare it and if needed where in CG-OS I need to fill?
3. How do i go ahead paying the tax for the STCG? Where are the details to be entered for that? (I suppose that I need to pay 15% of 3000/-. Clarify).
Thanks in advance.
Author:
vikas
Jul 20, 2009
Jul 20, 2009
Which challan need to file
Hi ,
I have income ( Rs. 4000) from bank interest. Which challan i need to file to pay tax.
Thanks
I have income ( Rs. 4000) from bank interest. Which challan i need to file to pay tax.
Thanks
Capital Gains Calculation
Hi
I used the Tax Wizard of Economic Times to calculate my tax liability. Though it was very good for all other areas, in Capital Gains Calculation , it was not indexing and subtracting the cost of Acquisition.
I acquired a residential Plot in Chennai in 17th June 1991 at a cost of Rs 18,224 /-. I sold the same in 5th August 2008 at a cost of Rs 18,84,000 /-. I spent Rs 5000/- for fencing in May 2002. The incidental Expenses on my sale was Rs 10000/-. I deposited Rs 18,00,000/- in Capital Gains Account Scheme 1988 in SBI for building second floor in my commercial building owned by me.
Can you help me in calculating my Tax liability and whether my decision is right ?
Regards
I used the Tax Wizard of Economic Times to calculate my tax liability. Though it was very good for all other areas, in Capital Gains Calculation , it was not indexing and subtracting the cost of Acquisition.
I acquired a residential Plot in Chennai in 17th June 1991 at a cost of Rs 18,224 /-. I sold the same in 5th August 2008 at a cost of Rs 18,84,000 /-. I spent Rs 5000/- for fencing in May 2002. The incidental Expenses on my sale was Rs 10000/-. I deposited Rs 18,00,000/- in Capital Gains Account Scheme 1988 in SBI for building second floor in my commercial building owned by me.
Can you help me in calculating my Tax liability and whether my decision is right ?
Regards
Which Challan for Bank Interest?
Mr. Vikas,
If your Total Income for AY 2009-10 is crossing Rs.1.50 lacs, then only you need to pay tax. Challan No. is 280. You can take the print from Icome Tax site ( incometaxindia.gov.in ).
Regards.
If your Total Income for AY 2009-10 is crossing Rs.1.50 lacs, then only you need to pay tax. Challan No. is 280. You can take the print from Icome Tax site ( incometaxindia.gov.in ).
Regards.
Author:
Kaly
Jul 20, 2009
Jul 20, 2009
TAX QUERY
Sir,
My wife is having following income for 2008-2009:-
1. Interest from bank (monthly income): INR 85000
2. Short term capital gain : INR 3000
------------------------------------------------
TOTAL INR 88000
Does she require to pay any income tax?
Whether she needs to pay income tax on Short term capital gain @15% in above income?
R
My wife is having following income for 2008-2009:-
1. Interest from bank (monthly income): INR 85000
2. Short term capital gain : INR 3000
------------------------------------------------
TOTAL INR 88000
Does she require to pay any income tax?
Whether she needs to pay income tax on Short term capital gain @15% in above income?
R
Re: Re: Long term capital gains on sale of securities
Hi Kiran,
Thanks - I am glad you are benefiting from the articles.
End of the CG Schedule there is section D-> Information on accural/recepit of capital gains:
Yes, you don't have to fill this for the long term capital gains for securities.
Thanks - I am glad you are benefiting from the articles.
End of the CG Schedule there is section D-> Information on accural/recepit of capital gains:
Yes, you don't have to fill this for the long term capital gains for securities.
Re: STCG
Hi Rajeev,
No, the remaining amount would not be taxed. The only tax you have to pay on short term capital gain is the STCG tax.
No, the remaining amount would not be taxed. The only tax you have to pay on short term capital gain is the STCG tax.
Re: Short Term Capital Gain
Hi Hemantshilpa,
You do not have to pay any other tax on STCG apart form the STCG tax - please see the comment above.
Capital gain should be included in the schedule for capital gains.
You do not have to pay any other tax on STCG apart form the STCG tax - please see the comment above.
Capital gain should be included in the schedule for capital gains.
Re: Short Term Cap Gain
Hi Rams,
1. You need to fill the details of the capital gain in schedule CG.
2. You have said you have STCG. So there shouldn't be anything mentioned about LTCG.
If you have LTCG from shares that is not taxed, you need to mention it in Schedule EI - 3.
3. Yes, you would need to pay 15% of the STCG. You have to fill Challan 280 and pat this as self assessment tax.
You can download challan 280 here.
1. You need to fill the details of the capital gain in schedule CG.
2. You have said you have STCG. So there shouldn't be anything mentioned about LTCG.
If you have LTCG from shares that is not taxed, you need to mention it in Schedule EI - 3.
3. Yes, you would need to pay 15% of the STCG. You have to fill Challan 280 and pat this as self assessment tax.
You can download challan 280 here.
Re: Which challan need to file
Re: Capital Gains Calculation
Hi S Nandu,
The amount deposited in Capital Gains Account Scheme would help you save tax ONLY if you use it for construction of a residential property - not commercial property.
You can calculate the tax as described in the article "Long Term Capital Gains (LTCG) on Sale of a House – Calculation and Income Tax".
The amount deposited in Capital Gains Account Scheme would help you save tax ONLY if you use it for construction of a residential property - not commercial property.
You can calculate the tax as described in the article "Long Term Capital Gains (LTCG) on Sale of a House – Calculation and Income Tax".
Re: TAX QUERY
Hi Kaly,
It is not clear if the interest income is monthly or not.
If it is monthly, her total income for the year is above the tax exempt limit, and she would need to file an IT return and pay tax on the interest income as well as the short term capital gain tax.
If the interest income you have mentioned is the income for the full year, then she doesn't need to pay any tax on the interest or on the STCG.
It is not clear if the interest income is monthly or not.
If it is monthly, her total income for the year is above the tax exempt limit, and she would need to file an IT return and pay tax on the interest income as well as the short term capital gain tax.
If the interest income you have mentioned is the income for the full year, then she doesn't need to pay any tax on the interest or on the STCG.
Author:
Dhana Prakash
Jul 20, 2009
Jul 20, 2009
How to fill ITR-2 with Long Term Capital Loss from shares
Hi Raagav,
Thank you very much for your answer. But if I mention the LTCG loss from shares at Schedule CG, loss is automatically shown at schedules CYLA and CFL. And these schedules are read-only. How should I deal with this situation? You say I have to mention LTCG loss from shares should be mentioned at Schedule CG but not at CYLA & CFL. But it is shown automatically and CYLA & CFL are read-only.
Can you please help me in this peculiar situation? I am using ITR-2.
Regards,
Dhana Prakash
Thank you very much for your answer. But if I mention the LTCG loss from shares at Schedule CG, loss is automatically shown at schedules CYLA and CFL. And these schedules are read-only. How should I deal with this situation? You say I have to mention LTCG loss from shares should be mentioned at Schedule CG but not at CYLA & CFL. But it is shown automatically and CYLA & CFL are read-only.
Can you please help me in this peculiar situation? I am using ITR-2.
Regards,
Dhana Prakash
Capital Gains
Hi Raagvamd,
Thanks for clafification.Will it be ok if i buy a flat from builders within next two years out of the Capital Gains Account ?
Thanks for clafification.Will it be ok if i buy a flat from builders within next two years out of the Capital Gains Account ?
Re: How to fill ITR-2 with Long Term Capital Loss from shares
Hi Dhana,
LTCG from shares is to be shown in Schedule EI (3). Have you checked if it accept negative numbers?
LTCG from shares is to be shown in Schedule EI (3). Have you checked if it accept negative numbers?
Author:
Dhana Prakash
Jul 22, 2009
Jul 22, 2009
How to fill ITR-2 with Long Term Capital Loss from shares
Hi Raaga,
Yes Raaga, I checked at EI(3), the form doesn't accept negative numbers. This is the sole reason I am waiting to submit my returns from 2 weeks. I am struck here.
If you look at all of my queries from the begining at this article, all revolve around this only.
Can you please help me?
Regards,
Dhana Prakash
Yes Raaga, I checked at EI(3), the form doesn't accept negative numbers. This is the sole reason I am waiting to submit my returns from 2 weeks. I am struck here.
If you look at all of my queries from the begining at this article, all revolve around this only.
Can you please help me?
Regards,
Dhana Prakash
Re: How to fill ITR-2 with Long Term Capital Loss from shares
Hi Dhana,
I am sorry, but I don't have much experience with the online / electronic form and e-filing.
Maybe you should check with a CA... If you find a solution, I would really appreciate it if you can share it with us here...
Thanks.
I am sorry, but I don't have much experience with the online / electronic form and e-filing.
Maybe you should check with a CA... If you find a solution, I would really appreciate it if you can share it with us here...
Thanks.
Author:
ARWIN
Jul 31, 2009
Jul 31, 2009
LONG TERM CAPITAL GAIN
Sir,
Please calculate the tax on LTCG:
Details as as follows:
Purchased Land: March 1989 for Rs. 58,000/-
Sold that Land : June 2007 for Rs. 8,60,000/-
Do i have to pay tax, and how much?
How to save tax, if payable?
How to calculate the LTCG tax?
Regards,
Arwin
Please calculate the tax on LTCG:
Details as as follows:
Purchased Land: March 1989 for Rs. 58,000/-
Sold that Land : June 2007 for Rs. 8,60,000/-
Do i have to pay tax, and how much?
How to save tax, if payable?
How to calculate the LTCG tax?
Regards,
Arwin
Author:
vijay karan asawa
Jul 31, 2009
Jul 31, 2009
long term capital gain tax on open offer of equity shares
sir,
i was having 1234(including bonus and rights) no's of shares of ranbaxy lab as on 1/8/2008 aquired in between 1985-86 to 2001-02.i offered all these shares to M/s Dayachi in his open purchase offerof ranbaxy shares @737/- per share,when he aquired m/s ranbaxy lab.
M/s dayachi accepted 569 no's of shares @737 per share and send money rs 419353 and released balance 665 shares.
please guide whether long term capital gain tax is payable on this amount i.e Rs 419353. because no STT is paid. and please mention how it has to be calculated?
if your answer is yes then i have salary income is 80,000 after 80 c deductions and business loss is 250000.this long term gain(Rs 419353) has to be adjusted in which part? ihave submit my I.T Return before 31 st july to avail carry forward businnes loss.
Thanks ,
V.K.Asawa
i was having 1234(including bonus and rights) no's of shares of ranbaxy lab as on 1/8/2008 aquired in between 1985-86 to 2001-02.i offered all these shares to M/s Dayachi in his open purchase offerof ranbaxy shares @737/- per share,when he aquired m/s ranbaxy lab.
M/s dayachi accepted 569 no's of shares @737 per share and send money rs 419353 and released balance 665 shares.
please guide whether long term capital gain tax is payable on this amount i.e Rs 419353. because no STT is paid. and please mention how it has to be calculated?
if your answer is yes then i have salary income is 80,000 after 80 c deductions and business loss is 250000.this long term gain(Rs 419353) has to be adjusted in which part? ihave submit my I.T Return before 31 st july to avail carry forward businnes loss.
Thanks ,
V.K.Asawa
Re: LONG TERM CAPITAL GAIN
Hi Arwin,
Please check out the article Long Term Capital Gains (LTCG) on Sale of a House – Calculation and Income Tax for a detailed procedure.
Please check out the article Long Term Capital Gains (LTCG) on Sale of a House – Calculation and Income Tax for a detailed procedure.
Re: long term capital gain tax on open offer of equity shares
Hi Vijay,
Since no STT has been paid, you would need to pay tax on the gain.
It can not be adjusted against salary or business income. Please check out "Set Off and Carry Forward of Losses – Capital Gains and House Property" for more on set off and carry forward of losses.
Since no STT has been paid, you would need to pay tax on the gain.
It can not be adjusted against salary or business income. Please check out "Set Off and Carry Forward of Losses – Capital Gains and House Property" for more on set off and carry forward of losses.
Author:
Shahid
Aug 08, 2009
Aug 08, 2009
Query in Capital Gain/Loss in Shares/MF
Hi Raag Vamdatt,
I have 2 queries for calculating gain/loss from Share and MF
1) How to accurately calculate gain/loss
Share
-----
Purchase Price: Rs 7000
Brokerage: 35
Service Tax: 5
STT: 10
Total Purchase price: 7050
Selling Price: Rs 10000
Brokerage: 60
Service Tax: 15
STT: 25
Total Selling price: Rs 9900
Total profit: 9900 - 7050 = Rs 2850
Is the above calculation for profit is accurate for tax calculation. Is Brokerage, STT & ST taken care accurately?
In case of Mutual Fund (Diversified & ELSS) how exact profit/loss is calculated for tax calculation? How entry loads, exit load & STT are taken care for profit/loss calculation? I have SIP and I found STT is not charge during every SIP purchase, will STT comes into factor at the time of selling MF? I am buying SBI MF from SBI online transaction site. I have not sold any MF yet.
2) Above gain/loss and ITR2
In above point 1…
In case of short term capital gain I will fill ITR2 under CG-OS (A5) right?
In case of long term capital gain I will fill ITR2 under EI (3) right?
In ITR2, CG-OS (A5) & EI (3) are the only places I need to enter Capital gain based on above example. Appreciate if you let me know if I left anything.
I know you have explained some of the answers, just for my clarity and confirmation I am asking again, so excuse me for this.
I have already filed my IT return for AY 2009-10, the above information is just for my understanding and preparation for next year return.
Thanks in advance.
Regards,
Shahid
I have 2 queries for calculating gain/loss from Share and MF
1) How to accurately calculate gain/loss
Share
-----
Purchase Price: Rs 7000
Brokerage: 35
Service Tax: 5
STT: 10
Total Purchase price: 7050
Selling Price: Rs 10000
Brokerage: 60
Service Tax: 15
STT: 25
Total Selling price: Rs 9900
Total profit: 9900 - 7050 = Rs 2850
Is the above calculation for profit is accurate for tax calculation. Is Brokerage, STT & ST taken care accurately?
In case of Mutual Fund (Diversified & ELSS) how exact profit/loss is calculated for tax calculation? How entry loads, exit load & STT are taken care for profit/loss calculation? I have SIP and I found STT is not charge during every SIP purchase, will STT comes into factor at the time of selling MF? I am buying SBI MF from SBI online transaction site. I have not sold any MF yet.
2) Above gain/loss and ITR2
In above point 1…
In case of short term capital gain I will fill ITR2 under CG-OS (A5) right?
In case of long term capital gain I will fill ITR2 under EI (3) right?
In ITR2, CG-OS (A5) & EI (3) are the only places I need to enter Capital gain based on above example. Appreciate if you let me know if I left anything.
I know you have explained some of the answers, just for my clarity and confirmation I am asking again, so excuse me for this.
I have already filed my IT return for AY 2009-10, the above information is just for my understanding and preparation for next year return.
Thanks in advance.
Regards,
Shahid
TAX Calc on different types of Mutual Funds
Hi Raagav,
Your article clearly explains how to calc STCG and LTCG on Equity and Debt MFs. But I have following different types of MFs. Could you please explain how to calc LTCG and STCG on these. I would like know periods for STCG & LTCG and tax calc methods.
1. Balance MFs
2. MIP MFs (Monthly Income Plan)
3. Equity Diversified
4. LIC BIMA PLUS (RISK an Balanced)
5. LIC MARKET PLUS (Growth)
Could you please clarify?
Regards,
Dhana Prakash
Your article clearly explains how to calc STCG and LTCG on Equity and Debt MFs. But I have following different types of MFs. Could you please explain how to calc LTCG and STCG on these. I would like know periods for STCG & LTCG and tax calc methods.
1. Balance MFs
2. MIP MFs (Monthly Income Plan)
3. Equity Diversified
4. LIC BIMA PLUS (RISK an Balanced)
5. LIC MARKET PLUS (Growth)
Could you please clarify?
Regards,
Dhana Prakash
TAX Calc on Balanaced, MIP MFs and LIC MARKET PLUS
Hi Raagav,
Congrats to get gifted with baby raagav.
Your article clearly explains how to calc STCG and LTCG on Equity and Debt MFs. But I have following different types of MFs. Could you please explain how to calc LTCG and STCG on these. I would like know periods for STCG & LTCG and tax calc methods.
1. Balance MFs
2. MIP MFs (Monthly Income Plan)
3. Equity Diversified
4. LIC BIMA PLUS (RISK an Balanced)
5. LIC MARKET PLUS (Growth)
Could you please clarify?
Regards,
Dhana Prakash
Congrats to get gifted with baby raagav.
Your article clearly explains how to calc STCG and LTCG on Equity and Debt MFs. But I have following different types of MFs. Could you please explain how to calc LTCG and STCG on these. I would like know periods for STCG & LTCG and tax calc methods.
1. Balance MFs
2. MIP MFs (Monthly Income Plan)
3. Equity Diversified
4. LIC BIMA PLUS (RISK an Balanced)
5. LIC MARKET PLUS (Growth)
Could you please clarify?
Regards,
Dhana Prakash
Re:Query in Capital Gain/Loss in Shares/MF
Hi Shahid,
Your calculation is slightly inaccurate - STT can not be included in this calculation.
Any brokerage paid, including the service tax is deductible for calculating tax. Similarly, if you paid any money to your depository participant (DP) for movement of stocks, even that is deductible. However, STT is not deductible.
In MFs, entry loads and exit loads would not figure in capital gain calculation - they are not deductible. Same is true for STT.
On MF units, STT is charged at the time of redemption.
Your calculation is slightly inaccurate - STT can not be included in this calculation.
Any brokerage paid, including the service tax is deductible for calculating tax. Similarly, if you paid any money to your depository participant (DP) for movement of stocks, even that is deductible. However, STT is not deductible.
In MFs, entry loads and exit loads would not figure in capital gain calculation - they are not deductible. Same is true for STT.
On MF units, STT is charged at the time of redemption.
Re:TAX Calc on Balanaced, MIP MFs and LIC MARKET PLUS
Hi Dhanaprakash,
Thanks!
The capital gain calculation depends only on one fact - whether the fund is an equity fund or a debt fund.
So, you would need to determine this for each of your funds.
For funds that have both equity and debt components (say balanced funds), a fund is treated as an equity fund if it has maintained an equity component of at least 65% throughout the year.
Thanks!
The capital gain calculation depends only on one fact - whether the fund is an equity fund or a debt fund.
So, you would need to determine this for each of your funds.
For funds that have both equity and debt components (say balanced funds), a fund is treated as an equity fund if it has maintained an equity component of at least 65% throughout the year.
Re:TAX Calc on Balanaced, MIP MFs and LIC MARKET PLUS
Hi Raagav,
Thanks a lot for your clarifications.
Regards,
Dhana Prakash
Thanks a lot for your clarifications.
Regards,
Dhana Prakash
LTCG
Dear Raagav,
My father expired in 1992 and my mother expired in 2002 leaving an old house built in 1942. The legal heirs are two sons and the house is sold and the proceeds are divided into two parts. The questions are:
1. Is it correct to assume that the legal heirs need not pay Capital gains tax, since the property is truly inherited and for the purpose of division it has been sold?
2. If the tax is payable by each of legal heirs, how is the indexation done? Is it from 1981 or is it from 2002 after deriving the value for 2002 from 1981.? This is because the liability of tax upto 2002 lies with deceased ( in this case the mother who naturally inherited from her husband?
3. Is it possible to invest on a flat with the proceeds of capital gains jointly with my son, ( who will get the balance money on bank loan ) where the property will be registered jointly?
4 Is there any other alternative?
Regards
My father expired in 1992 and my mother expired in 2002 leaving an old house built in 1942. The legal heirs are two sons and the house is sold and the proceeds are divided into two parts. The questions are:
1. Is it correct to assume that the legal heirs need not pay Capital gains tax, since the property is truly inherited and for the purpose of division it has been sold?
2. If the tax is payable by each of legal heirs, how is the indexation done? Is it from 1981 or is it from 2002 after deriving the value for 2002 from 1981.? This is because the liability of tax upto 2002 lies with deceased ( in this case the mother who naturally inherited from her husband?
3. Is it possible to invest on a flat with the proceeds of capital gains jointly with my son, ( who will get the balance money on bank loan ) where the property will be registered jointly?
4 Is there any other alternative?
Regards
Author:
A Rakib
Oct 07, 2009
Oct 07, 2009
LTCG on bonus shares
Dear Sir
I have recently sold 300 nos of ONGC bonus shares which was issued during 2006. How do I need calculate the Long Term Capital Gain?
I have recently sold 300 nos of ONGC bonus shares which was issued during 2006. How do I need calculate the Long Term Capital Gain?
Author:
KALY
Oct 21, 2009
Oct 21, 2009
Tax query
I am a NRI and would like to put Rs. 12 lacs in bank under monthly income scheme. When doing so, do I need to declare it somewhere or I can just put it on bank on here name?
Regards
Kaly
Regards
Kaly
Re: LTCG
Hi S Nandu,
1. Although the legal heirs inherited the property, capital gain needs to be paid by them on selling it. This would be in proportion of their share in the property.
2. The full liability is on the legal heirs, as they were the owners at the time of selling it. Fair market value needs to be determined for 1981, and needs to be indexed to arrive at the cost of acquisition.
3. Yes
4. If you want to save the capital gains tax, the only option is to invest in another house, or to buy section 54 bonds.
Check out How to save / avoid Long Term Capital Gain (LTCG) Tax on Sale of a House for more.
1. Although the legal heirs inherited the property, capital gain needs to be paid by them on selling it. This would be in proportion of their share in the property.
2. The full liability is on the legal heirs, as they were the owners at the time of selling it. Fair market value needs to be determined for 1981, and needs to be indexed to arrive at the cost of acquisition.
3. Yes
4. If you want to save the capital gains tax, the only option is to invest in another house, or to buy section 54 bonds.
Check out How to save / avoid Long Term Capital Gain (LTCG) Tax on Sale of a House for more.
Re: LTCG on bonus shares
Hi A Rakib,
The cost of acquisition of bonus shares is zero. Thus, the entire sale proceed would be LTCG. But since you sold them after 3 years (assuming the shares were issued before Oct 2006), it would be tax free.
The cost of acquisition of bonus shares is zero. Thus, the entire sale proceed would be LTCG. But since you sold them after 3 years (assuming the shares were issued before Oct 2006), it would be tax free.
Re: Tax query
Hi Kaly,
I don't think you need to declare it as long as the money is moved through proper banking channels.
I don't think you need to declare it as long as the money is moved through proper banking channels.
Author:
A Rakib
Oct 30, 2009
Oct 30, 2009
Re: Re: LTCG on bonus shares
Dear Sir
Thank you for your reply. It seems that as the ONGC bonus shares were issued on 30.10.09, the shares attract LTCG. However I am still confused as I have paid STT during sale proceed, do I still have to pay LTCG? And why the bonus shares issued before Oct 2006 is tax free?
Thank you for your reply. It seems that as the ONGC bonus shares were issued on 30.10.09, the shares attract LTCG. However I am still confused as I have paid STT during sale proceed, do I still have to pay LTCG? And why the bonus shares issued before Oct 2006 is tax free?
Re: Re: Re: LTCG on bonus shares
Hi A Rakib,
My apologies - I mis-interpreted the date.
LTCG is exempt for equity shares. Since you have held the shares for more than 1 year, it would be LTCG, and would hence be exempt from tax.
(A bonus share issued before Oct 2008 would not attract any tax, as the gain would be LTCG due to the holding period being more than 1 year).
My apologies - I mis-interpreted the date.
LTCG is exempt for equity shares. Since you have held the shares for more than 1 year, it would be LTCG, and would hence be exempt from tax.
(A bonus share issued before Oct 2008 would not attract any tax, as the gain would be LTCG due to the holding period being more than 1 year).
Author:
Arvind
Nov 04, 2009
Nov 04, 2009
TAX ON LTCG IF PERSON DO NOT HAVE OTHER INCOME
Sir,
My query regarding is on threshold limit exemption for a person who have no income other than LTCG in particular F.Y.
For Example if a male below 65 years has income for F.Y. 09-10:-
LTCG - 500000
Any other income - NIL
Than LTCG to be paid on (500000-160000=340000)
Is it right or wrong.
Also please tell the implication of 80C in this matter.
thanks and regards,
Arvind
My query regarding is on threshold limit exemption for a person who have no income other than LTCG in particular F.Y.
For Example if a male below 65 years has income for F.Y. 09-10:-
LTCG - 500000
Any other income - NIL
Than LTCG to be paid on (500000-160000=340000)
Is it right or wrong.
Also please tell the implication of 80C in this matter.
thanks and regards,
Arvind
when do 3 yrs start for STCG / LTCG
Hi
I read details about STCG / LTCG and found then very useful. This is an excellent website...keep up the good work
I have a question on WHEN do 3 yrs for the above calculations start. These days we buy a lot of apts under construction & those are registered almost after 2-3 yrs.
So, do 3 yrs for LTCG start
(a) when I bought (signed the agreement with builder)
or
(b) from date of registration (which can be 2-3 yrs after the apt was bought)
Would really appreciate claritication on this
Thanks
SM
I read details about STCG / LTCG and found then very useful. This is an excellent website...keep up the good work
I have a question on WHEN do 3 yrs for the above calculations start. These days we buy a lot of apts under construction & those are registered almost after 2-3 yrs.
So, do 3 yrs for LTCG start
(a) when I bought (signed the agreement with builder)
or
(b) from date of registration (which can be 2-3 yrs after the apt was bought)
Would really appreciate claritication on this
Thanks
SM
Re: TAX ON LTCG IF PERSON DO NOT HAVE OTHER INCOME
Hi Arvind,
Yes, your illustration is correct.
I do not believe 80C would have any implication here, because tax on LTCG is a "special" tax, and can't be reduced through section 80C investments.
Yes, your illustration is correct.
I do not believe 80C would have any implication here, because tax on LTCG is a "special" tax, and can't be reduced through section 80C investments.
Re: when do 3 yrs start for STCG / LTCG
Hi Laksar,
Thanks a lot for your positive feedback...
The question of "when" comes up a lot... The problem is that there is no clear cut answer for it, and it depends on a lot of factors. In fact, this is come up so many times for litigation as well!
However, as a general rule, it would be the date of the agreement. It also would help your case if bulk of the amount is also paid at that time.
Thanks a lot for your positive feedback...
The question of "when" comes up a lot... The problem is that there is no clear cut answer for it, and it depends on a lot of factors. In fact, this is come up so many times for litigation as well!
However, as a general rule, it would be the date of the agreement. It also would help your case if bulk of the amount is also paid at that time.
Author:
Vishal
Nov 25, 2009
Nov 25, 2009
STCG
1. I have STCG of Rs. 30000/- I will pay the Tax at @ 15%. Are there any deductible allowed from the gains I have made like stt already paid or account maintainence charges ?
2. After paying the STCG tax do i need to add the gains to by income earned from salary which is around 700000 ?
2. After paying the STCG tax do i need to add the gains to by income earned from salary which is around 700000 ?
Re: STCG
Hi Vishal,
1. Yes, brokerage and STT paid can be deducted
2. No. STCG tax is the only tax you would pay on it.
1. Yes, brokerage and STT paid can be deducted
2. No. STCG tax is the only tax you would pay on it.
Author:
op
Dec 02, 2009
Dec 02, 2009
confusion of stt deduction.
sir,
you reply for shahid dt. 12.09.09 that stt paid not deductable from gain or loss, but again you says to vishal dt. 02.12.09 that stt paid can be deductable.
please clear the confusion.
you reply for shahid dt. 12.09.09 that stt paid not deductable from gain or loss, but again you says to vishal dt. 02.12.09 that stt paid can be deductable.
please clear the confusion.
Author:
shyam
Dec 05, 2009
Dec 05, 2009
stcg with salary
dear sir,
my income from salary ( f/y.09-10) is Rs.132000/- & from stcg(shares) is 280000/-. please guide me through example that on which amount I pay i.tax & on which slab.
I have 95000/- from l.i.c & 1200/- from e.s.i.c . can I get Tax relief on the above for stcg and salary.
my income from salary ( f/y.09-10) is Rs.132000/- & from stcg(shares) is 280000/-. please guide me through example that on which amount I pay i.tax & on which slab.
I have 95000/- from l.i.c & 1200/- from e.s.i.c . can I get Tax relief on the above for stcg and salary.
Author:
Trader
Dec 09, 2009
Dec 09, 2009
Business Income or STCG
Sir,
A person is not having any other business or job. He is a full time stock trader.
1) Profit from delivery based trading of shares through stock exchange ,will be treated as business income or short term capital gains?
2) Under any circumstance, profit from delivery based trading of shares through a stock exchange will be treated as short term capital gains ? Under which circumstances the respective profit will be treated as business income and not STCG?
3)If the person is not having any other income but only profits from delivery based trading of shares through stock exchange then he needs to pay only STCG tax ?
4)After investing in a particular company if the person actively trades in futures of that company, even then the profit from sale of shares of that compnay after 12 months will be treated as LTCG or not, considering the fact that though shares were sold after 12 months but these shares were traded in futures.
5)How can a person maintain different accounts for trading , investment STCG & LTCG?
6) I have asked these queries for general information and educational purpose.
A person is not having any other business or job. He is a full time stock trader.
1) Profit from delivery based trading of shares through stock exchange ,will be treated as business income or short term capital gains?
2) Under any circumstance, profit from delivery based trading of shares through a stock exchange will be treated as short term capital gains ? Under which circumstances the respective profit will be treated as business income and not STCG?
3)If the person is not having any other income but only profits from delivery based trading of shares through stock exchange then he needs to pay only STCG tax ?
4)After investing in a particular company if the person actively trades in futures of that company, even then the profit from sale of shares of that compnay after 12 months will be treated as LTCG or not, considering the fact that though shares were sold after 12 months but these shares were traded in futures.
5)How can a person maintain different accounts for trading , investment STCG & LTCG?
6) I have asked these queries for general information and educational purpose.
Author:
Woonawrenry
Dec 22, 2009
Dec 22, 2009
Generic
I think you are right. But you should cover more on this topic.
Author:
Abhishek
Jan 03, 2010
Jan 03, 2010
Capital Gain Tax for new purchase along with Son
My father sold a house 1 year back and now we want to invest the same amount for new property.The new property which we are looking is more than the capital gain amount so we need to take to loan on top of that.
my query is :
1) Can son and father become a joint owner of a new propery so that father gets an exemption on capital gain?
2) under the joint ownership the loan taken by son will be eligible for tax expemtion under his salary or not?
my query is :
1) Can son and father become a joint owner of a new propery so that father gets an exemption on capital gain?
2) under the joint ownership the loan taken by son will be eligible for tax expemtion under his salary or not?
Furniture expense used for LTCG Exemption
Hi,
I purchased a flat in Dec 2004 for 7.5 lacs and sold it in Dec 2009 for 22.5 lacs. I am in process of purchasing a new flat to invest the funds for LTCG exemption.
My question is "Whether the furniture and interior expenses that I am going to incur in my new flat be used for LTCG exemption?"
Appreciate your help and thank you for your comments.
Hrishikesh
I purchased a flat in Dec 2004 for 7.5 lacs and sold it in Dec 2009 for 22.5 lacs. I am in process of purchasing a new flat to invest the funds for LTCG exemption.
My question is "Whether the furniture and interior expenses that I am going to incur in my new flat be used for LTCG exemption?"
Appreciate your help and thank you for your comments.
Hrishikesh
Author:
SONI
Jan 10, 2010
Jan 10, 2010
STCL
i had lost around 3 lakhs while trading in stock market in last 3months, can i have some benefit to get from income tax calculation.
1. can i show 3 lakhs in capital loss and it will be deducted from my earning of this financial year 2009-2010.
1. can i show 3 lakhs in capital loss and it will be deducted from my earning of this financial year 2009-2010.
Author:
Kalyan
Jan 22, 2010
Jan 22, 2010
Tax query
My wife is having yearly income of INR 86000 from Bank and around INR 25000/- from Share trading.
How much tax she needs to pay, if not, does she require to file Income tax return?
How much tax she needs to pay, if not, does she require to file Income tax return?
Author:
gaurav kumar
Jan 28, 2010
Jan 28, 2010
am i in taxable limit?
I would like to thank u for ur meaning full article and very kindly replies. sir I have two questions-
1. I am student and have no source of income, I receive 1, 50,000 from my mother who is paying tax on that, and then it is necessary to me to show this in IT form.
2. With this I gain 1, 00,000 within 2009-10 FY. Then what should I have to pay as IT, am I in taxable limit. With lots of thanks
1. I am student and have no source of income, I receive 1, 50,000 from my mother who is paying tax on that, and then it is necessary to me to show this in IT form.
2. With this I gain 1, 00,000 within 2009-10 FY. Then what should I have to pay as IT, am I in taxable limit. With lots of thanks
Author:
SANDEEP PETKAR
Feb 07, 2010
Feb 07, 2010
SHORT TERM GAINS FROM SALE OF HOUSE PROPERTY
Hi,
I sold a house for Rs. 13.95 lacs in Oct'09 which was purchased jointly by Self and my wife in Jan'09 for Rs. 9.20 lacs. I am a salaried person with an annual salary income of Rs. 9 lacs. I had taken a loan of Rs. 4.50 lacs to purchase this house. Rs. 8 lacs from the sales proceeds was reinvested
jointly in buying another property in Nov'09.
I would like to know :
1) Whether this will be treated as short term capital gain ?
2) If yes what will be my share in gain ?
3) What will be my tax liability ?
4) Can I off-set my gain against loss I incurred in trading of shares in Fy09-10 ?
5) Can I also off-set my gain against loss I incurred in trading of shares in Fy07-08 & Fy 08-09 ?
6) If 4 & 5 above not possible, can I consider my loss in trading of shares in Fy09-10 while
computing my taxable income for Fy09-10 ?
7) What will be the benefit of reinvesting of Rs. 8 lacs from the point of view of
availing tax benefits in Fy09-10 ?
Thanks & Regards,
Sandeep....
I sold a house for Rs. 13.95 lacs in Oct'09 which was purchased jointly by Self and my wife in Jan'09 for Rs. 9.20 lacs. I am a salaried person with an annual salary income of Rs. 9 lacs. I had taken a loan of Rs. 4.50 lacs to purchase this house. Rs. 8 lacs from the sales proceeds was reinvested
jointly in buying another property in Nov'09.
I would like to know :
1) Whether this will be treated as short term capital gain ?
2) If yes what will be my share in gain ?
3) What will be my tax liability ?
4) Can I off-set my gain against loss I incurred in trading of shares in Fy09-10 ?
5) Can I also off-set my gain against loss I incurred in trading of shares in Fy07-08 & Fy 08-09 ?
6) If 4 & 5 above not possible, can I consider my loss in trading of shares in Fy09-10 while
computing my taxable income for Fy09-10 ?
7) What will be the benefit of reinvesting of Rs. 8 lacs from the point of view of
availing tax benefits in Fy09-10 ?
Thanks & Regards,
Sandeep....
Author:
N.PAUL
Feb 08, 2010
Feb 08, 2010
STCG
My taxable income during current year (assessment year 2010-2011) is expected to be Rs.1,55,000/- which include Short term Capital Gain of Rs. 21,000/- from stocks ( delivery based ). Kindly tell my income tax. If tax is payable, when to pay?
Very Informative & Excellent site
Hello,
Truely a good article and good knowhow of LTCG info under one site.
i had bought a site for 5 lakhs in 2001 and sold the same in Jan 2010 for 20 Lakhs.
in Nov 2009, i purchased a plot and now i would like to build the house at same plot for a budget of 20L and complete the same by Apr 2011.
so now should i have to pay any income tax on LTCG gained on above site.
even though u had answered such questions earlier, i wanted your opinion.
appreciate your answer.
regards
Anu
Truely a good article and good knowhow of LTCG info under one site.
i had bought a site for 5 lakhs in 2001 and sold the same in Jan 2010 for 20 Lakhs.
in Nov 2009, i purchased a plot and now i would like to build the house at same plot for a budget of 20L and complete the same by Apr 2011.
so now should i have to pay any income tax on LTCG gained on above site.
even though u had answered such questions earlier, i wanted your opinion.
appreciate your answer.
regards
Anu
Author:
raja
Feb 18, 2010
Feb 18, 2010
long term capital loss
I have long term capital loss. I have paid STT whiling selling the shares. Is it possible to show this loss to save tax?
Author:
Venkat M
Mar 10, 2010
Mar 10, 2010
Home Maker - how does the Capital gains affect
Hello,
My wife is a home maker. my mutual fund investments are through her.
I generally hold the funds for >1year so that we dont have to pay the capital gains tax. But, since she is a homemaker and doesnt have any other income to her account.. does it mean as long as the gains are not more than 1.9lakhs in a year, i dont need to worry about filing or having to pay any tax?
Kindly help me understand this.
Thanks
Venkat M
My wife is a home maker. my mutual fund investments are through her.
I generally hold the funds for >1year so that we dont have to pay the capital gains tax. But, since she is a homemaker and doesnt have any other income to her account.. does it mean as long as the gains are not more than 1.9lakhs in a year, i dont need to worry about filing or having to pay any tax?
Kindly help me understand this.
Thanks
Venkat M
STCG
Hi
How delivery based STCG from stocks is different from intraday stock trading STCG as far as I Tax is concerned? Do they require different ITR?
Baikai
How delivery based STCG from stocks is different from intraday stock trading STCG as far as I Tax is concerned? Do they require different ITR?
Baikai
STCG etc
Hello
I am also interested in the questions/ quarries asked by a Trader Dated 09-12-2009. Please reply the same and oblige.
Baikai
I am also interested in the questions/ quarries asked by a Trader Dated 09-12-2009. Please reply the same and oblige.
Baikai
Author:
Paul
Mar 12, 2010
Mar 12, 2010
Stock trading accounts
Sir,
I am a pensioner and do stock trading in a small scale through NSE. Kindly reply the following quarries;-
1) Short term capital gains from delivery based trading of shares, will be treated as business income or STCG? (Total turnout less than 10L.)
2) Short term capital gains from intraday trading of shares, will be treated as business income or STCG? (Total turnout less than 10L.)
3) Which type of accounts , ledgers and books are to be maintained by me for intraday and delivery based trading (short term and long term investments) for I Tax purposes.
Paul
I am a pensioner and do stock trading in a small scale through NSE. Kindly reply the following quarries;-
1) Short term capital gains from delivery based trading of shares, will be treated as business income or STCG? (Total turnout less than 10L.)
2) Short term capital gains from intraday trading of shares, will be treated as business income or STCG? (Total turnout less than 10L.)
3) Which type of accounts , ledgers and books are to be maintained by me for intraday and delivery based trading (short term and long term investments) for I Tax purposes.
Paul
Author:
Sanjay
Mar 12, 2010
Mar 12, 2010
Interest of home loan - can it be deducted from proceeds for LTCG calculations
scene - selling a house bought on home loan after 5 years - can the interest paid for home loan for the five years also be deducted from the proceeds to calculate the net gains
likewise can the expenses like soceity maintenance charges also be deducted
likewise can the expenses like municipal taxes, property taxes, etc. with regard to the house that have been paid also deducted from the proceeds to calculate the exact gain
would all above be subject to indexation factor.
likewise can the expenses like soceity maintenance charges also be deducted
likewise can the expenses like municipal taxes, property taxes, etc. with regard to the house that have been paid also deducted from the proceeds to calculate the exact gain
would all above be subject to indexation factor.
Author:
A. Sinha
Mar 13, 2010
Mar 13, 2010
Capital Loss Carry Forward
Very informative and lucid article on CG.
Nice of GOI to allow CLCF.
Can a Capital loss iincurred earlier ( within 8 years) be indexed before being set-off against a Capital gain this year ?
Seems logical based on the same reasoning as for indexation in Capital Gain calculation.
I would appreciate your reply which would help me with Adv tax payment .
Nice of GOI to allow CLCF.
Can a Capital loss iincurred earlier ( within 8 years) be indexed before being set-off against a Capital gain this year ?
Seems logical based on the same reasoning as for indexation in Capital Gain calculation.
I would appreciate your reply which would help me with Adv tax payment .
STCG - Different treatment for Residents & NRIs
Dear Raags,
This has reference to your answer dated 22 June 09 on STCG. It is mentioned that if total income including STCG is below the threshhold limit, then no Itax is payable on STCG, both by residents & NRIs.
For Residents, it is true (Sec 111A).
For NRIs - is it applicable. I thought NRIs have to ay STCG separately irrespective of total income including STCG.
I am an NRI. Last year I filed my return (thru a CA) showing Itax payable on STCG separately and not claiming the refund of TDS on STCG. The CA did not comment on this. This year also I have TSCG where TDS has been deducted but my total income including STCG would be less than Rs 1.5 Lacs.
What is the correct position please ?
Rgds
R N Sahu
This has reference to your answer dated 22 June 09 on STCG. It is mentioned that if total income including STCG is below the threshhold limit, then no Itax is payable on STCG, both by residents & NRIs.
For Residents, it is true (Sec 111A).
For NRIs - is it applicable. I thought NRIs have to ay STCG separately irrespective of total income including STCG.
I am an NRI. Last year I filed my return (thru a CA) showing Itax payable on STCG separately and not claiming the refund of TDS on STCG. The CA did not comment on this. This year also I have TSCG where TDS has been deducted but my total income including STCG would be less than Rs 1.5 Lacs.
What is the correct position please ?
Rgds
R N Sahu
Author:
neeraj
Mar 16, 2010
Mar 16, 2010
Income tax payment on short term capital gain from sale of equities
Hi!
I want to know
(i) that rate of income tax which i would have to pay on short term capital gains obtained from sale of equities (shares) within one year of purchase.
(ii) In case i want to make e-payment of this income tax, through what challan no. do i have to pay and under which Head.
I want to know
(i) that rate of income tax which i would have to pay on short term capital gains obtained from sale of equities (shares) within one year of purchase.
(ii) In case i want to make e-payment of this income tax, through what challan no. do i have to pay and under which Head.
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