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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)

And,

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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Comments

  1. After visiting your Site I am getting more hooked up to TAX and finance . Thanks Dude

  2. Anonymous says:

    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 :-)

  3. Nishant BK says:

    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

  4. Anonymous says:

    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“.

  5. 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

  6. 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

  7. Anonymous says:

    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“.

  8. Hi Venkat,

    The STCG from sale of property would be added to your income, and would be taxed at your applicable slab rates.

  9. 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

  10. Anonymous says:

    Hi Manikandan,

    A short term loss can be set off against any short term (or long term) gain in the same financial year.

  11. Manikandan A says:

    Can we set off the short term gain made in Debt ( income fund ) MF with the Short term Loss in Equity/Equity MF..??

  12. 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…..,

  13. Chander Kant says:

    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?

  14. Hi Chander Kant,

    Bank FDs are not considered as capital assets.

    As an aside, interest earned on bank FDs is fully taxable.

  15. 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.

  16. 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.

  17. Anonymous says:

    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.

  18. Anonymous says:

    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.

  19. Somani P N says:

    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

  20. 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.

  21. Anonymous says:

    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.

  22. 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?

  23. Anonymous says:

    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.

  24. Anonymous says:

    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?

  25. 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?

  26. Anonymous says:

    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.

  27. 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?

  28. 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

  29. Anonymous says:

    Hi,

    Although there is no calculator, you can calculate the capital gain or loss as described in this article.

  30. 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

  31. Anonymous says:

    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.

  32. Anonymous says:

    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.

  33. Anonymous says:

    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.

  34. 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.

  35. Anonymous says:

    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.

  36. 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

  37. Rachna Rane says:

    How to treat Capital Gains of Non Resident when income is below Taxable limit?

  38. Anonymous says:

    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!

  39. Anonymous says:

    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.

  40. 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

  41. Hi,

    I sold 300 units of MF (Equity based). I sold it after 1 year of purchase and STT was deducted during sales.

    I did not make any gain and I have a loss Rs. 7000. I don’t have any other short term or long term capital gains.

    Can I carry forward this loss to next year?

  42. Anonymous says:

    Hi Vishnu,

    No. Since LTCG on equities is not taxed, it can not be carried forward and set off against a gain.

  43. vikas kakkar says:

    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

  44. vikas kakkar says:

    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

  45. Anonymous says:

    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.

  46. 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.

  47. 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.

  48. Anonymous says:

    Hi Vishnu,

    Please file ITR2.

  49. 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.

  50. Anonymous says:

    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.

  51. Anonymous says:

    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.

  52. Anonymous says:

    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?

  53. Anonymous says:

    Hi Dhanaprakash,

    You should mention the loss in schedule CG Section B, but not in schedules CYLA and CFL.

  54. Anonymous says:

    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.

  55. 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.

  56. Dhanaprakash says:

    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

  57. Bina Trikha says:

    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.

  58. Anonymous says:

    Hi Dhanaprakash,

    Thanks a lot for your kind words… It is really encouraging…

    You need to declare this in schedule CG, section B.

  59. Anonymous says:

    Hi Partha,

    No, you need not do anything extra. Just mention the losses in the schedule CG, CYLA and CFL.

  60. Anonymous says:

    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.

  61. 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

  62. Dhanaprakash says:

    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

  63. 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

  64. 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.

  65. Anonymous says:

    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.

  66. Anonymous says:

    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.

  67. Anonymous says:

    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.

  68. Anonymous says:

    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.

  69. Anonymous says:

    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.

  70. 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

  71. Anonymous says:

    Hi Vikas,

    You can also download the challan 280 here.

  72. Anonymous says:

    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.

  73. Hi ,
    I have income ( Rs. 4000) from bank interest. Which challan i need to file to pay tax.

    Thanks

  74. Anonymous says:

    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“.

  75. Anonymous says:

    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

  76. Anonymous says:

    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?

  77. 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.

  78. Anonymous says:

    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 ?

  79. Dhana Prakash says:

    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

  80. Anonymous says:

    Hi Dhana,

    LTCG from shares is to be shown in Schedule EI (3). Have you checked if it accept negative numbers?

  81. Anonymous says:

    Hi S Nandu,

    Yes, you can do that.

  82. Dhana Prakash says:

    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

  83. Anonymous says:

    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.

  84. 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

  85. vijay karan asawa says:

    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

  86. Anonymous says:

    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.

  87. Anonymous says:

    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.

  88. 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

  89. 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

  90. Anonymous says:

    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

  91. 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.

  92. 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.

  93. Hi Raagav,

    Thanks a lot for your clarifications.

    Regards,
    Dhana Prakash

  94. 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).

  95. Anonymous says:

    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

  96. 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?

  97. 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?

  98. Anonymous says:

    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.

  99. Anonymous says:

    Hi Kaly,

    I don’t think you need to declare it as long as the money is moved through proper banking channels.

  100. Anonymous says:

    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.

  101. 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

  102. 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

  103. 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

  104. 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.

  105. 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.

  106. 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 ?

  107. Anonymous says:

    Hi Vishal,

    1. Yes, brokerage and STT paid can be deducted

    2. No. STCG tax is the only tax you would pay on it.

  108. 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.

  109. 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.

  110. 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.

  111. Woonawrenry says:

    I think you are right. But you should cover more on this topic.

  112. Anonymous says:

    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

  113. 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?

  114. 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.

  115. mrs kavita kapoor says:

    I AM A NON TAX PAYING SENIOR CITIZEN HOUSEWIFE.I HAD PURCHASED A RESIDENTIAL PLOT IN AY 2005-06 FOR RS 26,47,295.00(AFTER APPLYING CII)AND SOLD FOR RS 60,00,000.00 THE RESIDENTIAL PLOT IN AY 2010-2011.FROM THIS TRANSACTION, I BOOKED AND PAID TO A BUILDER FOR A RESIDENTIAL FLAT FOR RS 50,25,000.00 AND DEPOSITED RS 2,41,101.00 IN A CAPITAL GAIN A/C FOR REGISTRY.CAN YOU ADVICE AS REGARDS THE INCOME TAX THAT I HAVE TO PAY THIS ASSESSMENT YR.THANK YOU.

  116. It seems that this website is of no use since none of the query forwarded is being replied by the site owner. So, its better not to waste time on this site and look for other better options.

  117. Gopa Nair says:

    Sir,
    Please clarify the following point for me.

    I sold X Number of Shares on 3rd June 2009, after holding for around 3 years. This falls under LTCG Tax. Do I have to pay any tax for the gain that I got from this sale? From the article I am assuming it is Zero Tax, as the transaction is done thru NSE and STT is already paid. However, please clarify whether I have to include this gain while I file my return this May 2010 for AY 10-11? Why I am asking this question is because, I heard that in this year budget, FM has included Long term Holding of shares also taxable just like short time holding of shares.
    Thank you in advance.

  118. 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?

  119. 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.

  120. 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 .

  121. Anonymous says:

    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

  122. adc

  123. Pradeep says:

    Hi, I am a salaried person working in mumbai. Today I got shocked to see the notice from IT deparatment, with heading “Intimation Under Section 143(1) of the Income Tax Act, 1961″ saying to pay the Total Tax due of Rs-12,000, even though the said tax has been already deduced by my Employer for that FY. I also have the 26AS form for that Assessment year mentioning the Details of Tax Deducted at Source. Can you please help!
    Thanks.

  124. 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.

  125. Anonymous says:

    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

  126. Anonymous says:

    Hello
    I am also interested in the questions/ quarries asked by a Trader Dated 09-12-2009. Please reply the same and oblige.
    Baikai

  127. 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

  128. Ravi Venkatraman says:

    Dear Sir,

    Would like to know, whether I can add cost of improvement to the cost of purchase and arrive at the short term capital gain on sale of residential property.

    Regards,

    Ravi

  129. Venkat M says:

    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

  130. I sold a house for Rs. 28.00 lacs in June’09 which was purchased jointly by Self and my mother in Oct’06 for Rs. 26.00 lacs. I am a salaried person with an annual salary income of Rs. 10 lacs. I had taken a loan of Rs. 18.00 lacs to purchase this house.

    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 as maintenanc,Corpration tax, soc tax, brokerage and other leakage/sepage etc. in Fy09-10 ?

    5) since the property was more 6 yrs old can i consider indexation cost against the STCG?

    Thanks & Regards,
    Malik

  131. I inherited a flat from my father in May 2009 (as per his WILL). This was purchased in 1998. Now if I sell this flat will it be considered under LTCG or STCG?

  132. gaurav kumar says:

    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

  133. I sold a house for Rs. 28.00 lacs in June’09 which was purchased jointly by Self and my Mother in Oct’06 for Rs. 28.00 lacs. I am a salaried person with an annual salary income of Rs. 10 lacs. I had taken a loan of Rs. 18.00 lacs to purchase this house.

    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 as maintenanc,Corpration tax, soc tax, brokerage and other leakage/sepage etc. in Fy09-10 ?

    5) since the property was more 6 yrs old can i consider indexation cost against the STCG?

    Thanks & Regards,
    Sandeep….

  134. SANDEEP PETKAR says:

    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….

  135. 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?

  136. 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

  137. I have long term capital loss. I have paid STT whiling selling the shares. Is it possible to show this loss to save tax?

  138. gaurav kumar says:

    i read ur article and i have a question that, i am a student and have no source of income except share trading and my total income in this FY less then 1.5 lakhs (with all intraday and short term share trading ) then please advise me what should i have to pay as a income tax till 31march 2010.sir please give answer as quickly as possible. i m in stress. thanks

  139. sir,
    Please clarify— LTCGs on shares are tax free. However to show LTCG in the IT return, do we take the purchase price as reference , or do we calculate the indexed cost of purchase after applying CII, and then calculate the capital Gains.
    Also can we adjust LTCL against LTCG for the same year to arrive at net LTCG. This is also for Shares where LTCG are tax free. Thanks

  140. I have long term capital gain of Rs. 450000/- against sale of house property in April 2010, I have purchase a residential plot in May 2010 cost Rs. 450000/- plus also paid 50000/- for electricity facilitation and 21000/- for society maintenance and 15000/- for life time society club membership, it it necessary to construct something on this plot as i already have invested in purchase of residential plot up to the amount of capital gain or i can resides on open plot/land or i can reside in simple hut or i have to construct a room up to what cost, presently i resides in house purchased in December 2007 which i will give on rent and i will reside of open plot, by this way can I save capital gain tax ?,

  141. Anonymous says:

    Sir,
    I have agricultural land which is within 8 Kms of the muncipality in Punjab , I intend to sell it and want to know how can I reduce my Capital Gains Tax and the Legal Procedures available for it Thanks

  142. Amit Kakkar says:

    I have invested in mutual funds for more than 2 yrs and then reinvested in SBI Mg Tax Gain plan. I invested Rs. 12000 in the year 2007 by SIP. In the year 2009 I switched the fund from SBI Magnum Contra to SBI magnum tax gain growth plan which was around Rs. 21000/-. Now I need to know how to I do the tax calculations in my ITR filled by excel format. I did the same for my another mutual funds too.

  143. can a NRI take the benefit of Long Term Capital Gain

  144. gaurav jain says:

    fantastic , hats off . i thought i knew a few things but its much more than an icing on the cake
    thank u once again for helping people like me

  145. Hi

    I had filed ITR 2 for AY 2009-10 last year. details of my ITR2 was
    Income from Salary: 925000
    Income from Capital Gain: 28700 (from share market – STT paid)
    Deduction Under Chapter VIA: 100000
    Total tax laibility was : 161800 (as per my calculation taking 15% tax on capital gains)

    Yesterday i got an order from Incometax CPC office that my exact tax laibility is 166900 and in need to pay the balance tax. This means that tax calculation on STCG was taken @30%

    What should i do in such case. Is my calculation correct? Should i take up with income tax office as under section 111A where its mentioned a flat rate of 15%.

    Awaiting your reply.

    Thanks & Regards
    Manish

  146. I had purchased a house in 1983 for rs. 1,00,000.00 and sold in 2010 for rs. 16,00,000. I had also purchased one flat in 2005 , the balance amt is Rs.17,00,000. I would liket to use the sale amount to repay the home loan taken for the flat. Do we still need to pay capital gains. If not how much capital gain i need to pay. I had spent almost 1,50, 000 + 50,000 for rennovating the house, for which i do not have bills.

  147. We recently sold off our old house for a consideration of 40Lakhs and a 2BHK apartment(865 SFT @ INR 1900 psf plus govt taxes).Total consideration is thus 56,43,500. But the 2BHK apartment will be handed over to us in 2 years time as the builder will build the apartment on the same site where our old house was. As an alternate accommodation during these two years, we decided to buy another apartment else where(For INR 10,00,000) in my fathers name as the old house we are selling was also in his name. My question is can we claim a deduction on both the apartments i.e., one that we are buying immediately and the other which will be given to us by the builder after two years. My father is 63 yrs old and receives a pension of 12000 pm.

  148. Anonymous says:

    I own the following properties all purchased from my salary account
    Flat A purchased in 1989
    Flat B purchased in 2001
    Flat C purchased in 2006 (Housing loan taken which is now over)

    I sold Flat A in Dec 2010 for a net gain of Rs 40 lakhs
    In the meantime ,I also started investing in a new residential Flat D , the construction of which has already begun and which was registered in April 2010. I will get possession of Flat D only by Dec 2011. Flat D will cost me over Rs 65 lakhs, of which i have already paid 50%.

    My query is whether I can save on Long term capital gains tax arising from sale of Flat A by investing in Flat D or whether I have to invest in Long term capital gains Bonds.
    Do I need to maintain an escrow account for the sale proceeds? I intend to use the balance payment of Flat D from the sale proceeds of Flat A
    I fall in the high taxable income bracket.
    Please do advice whether i can offset the gains of sale of Flat A against the purchase of Flat D in this AY 2011-2012
    Thanking You
    Suraj Verma

  149. harinder says:

    sorry in my querry i wrote my wrong e mail harinder-c@hotmail.co instead of harinder_c@hotmail.com

  150. dear Sir,

    i use to trade every day in one stock only and its value is about 1000 rs and i purchase or sale 50 shares of it everyday so i want to know that the tax calculation of the whole year is only on the profit/loss that i get or on the turnover. means my friend told me that you purchase shares of rs60000/- every day so its about 2000000 to 2500000 lacs monthly so he told me that you have to pay tax on this amount and not on the profit/loss you get form it. so can you help me

  151. Anonymous says:

    my house is approx 100 years old.
    Govt approved valuer has estimated value at 20 Lacs in June 2010, but, it has been sold in June 2010, at 18Lacs only, being very old construction.
    Pl help for determining Capital gains.
    Regards,
    akj

  152. Munaf Mulla says:

    sir,
    its a gr8 pleasure to see such sites i have some mix question:
    1) we have inherited a property from my dad, like tat my uncles also have there name on some lands but not all r included in all lands some uncle names r not there..
    so now we want to sell the land belonging to family can we put there name in sale document to prove they r also the co owner of the said land. so the cheques received can be taken in all 6 names instead of 1 name to save capital gains for indiviuals is it possible plz reply me soon i would appreciate if u can give me ur cell number to reach as its real urgent thank u.
    may god bless u

  153. Kapil Madan says:

    Hello Sir,

    I can see many queries left unanswered above. If you are running a blog, please find some time to respond those queries publically, so that others can read and benefit from it. There are so many interesting questions here for novel investors, and your answers would be a great help to them.

    Thank you.

  154. Anonymous says:

    Please help me for this calculation
    I had purchased a residential site on 30.7.2004 for Rs.1228050/-. Recently, on 21.9.2010 I had sold it for Rs.5100000/-. Please help me in calculating :
    (1) The amount of Income Tax (LTCG 20%) on the LTCG generated here.
    (2) The amount to be invested in NHAI/REC Bonds to save the entire Tax amount.

    Thanks
    Manish

  155. Sir,
    On Nov.2009,I along with my son(only issue) have jointy purchased a flat with cost approx. Rs. 16,00,000/-. But entire amount was paid by me from my own source of income. My son had earlier purchased a flat on Jan.2002 & the same was sold on Sept.2010 & earned Long Term Capital Gain of approx. Rs. 8,00,000/- on sale of that flat.
    I want to know if my son payback to me Rs. 8,00,000/- as 50% payment as investment as co-ownership of the flat purchased on Nov.2009 at a cost approx. Rs.16,00,000/- (The flat purchasd jointly within one year before sale of other flat),can he save Tax on Long Term Capital Gain of approx. Rs.8,00,000/-
    What are official documents required in thease transactions?

    AMITABHA SEN GUPTA
    Add. A -153/UG-1, Shalimar Garden (Main), P.O- Sahibabad, GHAZIABAD,U.P
    PIN- 201005. E-Mail add:- mtbhsngpt@yahoo.co.in. (M) 9811306601

  156. Hello,
    My wife has received salary only for few months in the year Apr’2010 to Mar’2011, which amounts to 1,10,000 maximum.
    There is a STCG of approximately 25,000 INR.
    Has the STCG to be considered for taxation at 15% ?
    OR, since the total income is less than 1,60,000; there will be no tax liability?

    Thanks,
    Neil Shah

  157. Great site i chanced upon today. Informative. Compliments for the same.

    I have a query. I ahve 2 houses. First one is in my name and one in joint ownership with my wife.
    I amplanning to sell the first house which i bought in 1997. Would like to know the CG treatment. Would like to know CG can be managed by investing gains in purchase of new house.

    Thanks in advance.

  158. I had purchased a residential site on 30.7.2004 for Rs.1228050/-. Recently, on 21.9.2010 I had sold it for Rs.5100000/-. Please help me in calculating :
    (1) The amount of Income Tax (LTCG 20%) on the LTCG generated here.
    (2) The amount to be invested in NHAI/REC Bonds to save the entire Tax amount.

    Thanks
    Manish

  159. Anonymous says:

    DEAR SIRI SOLD A PLOT AND PURCHASE A FLAT IN JOINT NAME WITH MY WIFE INVETING ENTIRE AMOUNT TOTAL MONEY FOR PURCHASE WAS PAID BY ME STAMP DUTY PAID 50% FOR MALE 50% FOR FEMALE
    WILL I GET FULLM EXEMPTION ON LTCG
    REGARDS AHMAD46

  160. Dear Sir,
    My father was allotted a Plot by Punjab Urban planning & Development Authority (PUDA), Jallandhar on 26 May 2005 on payment of 25% of cost. The balance payments were paid in installments, the last installment was paid on 24 Nov 2008. As per their Terms & Conditions the allottee shall complete the building within 3 years from the date of issue of allotment letter (26 May 2005). He completed the minimum permissible construction (25%) comprising of one bedroom, one bathroom and one kitchen as per norms in Dec 2009. Now, he wants to settle down in Bangalore and has applied for a flat being constructed by Army Welfare Housing Organisation Society (AWHO). He has no other property. The flat in Bangalore has been booked on his name vide AWHO Booking letter dated 02 Aug 2010 with Probable Date of Completion (PDC) June 2013. The Payment schedule is 20% cost in Nov 2010, 20% cost in Feb 2011, 20% cost in Jul 2011, 20% cost in Jan 2012, 15 % cost in Jul 2012 and 5 % of balance cost + escalation etc 3 months before possession date. I have following questions to ask :-
    1. When can my father sell the PUDA plot (with 25 % constructed house ) to take advantage of exemption of Income Tax accrued from Long Term Capital Gain (LTCG)? The 3 years period for LTCG will commence from which date i.e.
    (a) Date of Allotment (26 May 2005) or
    (b) Date of last payment (24 Nov 2008) or
    (c) Date of Registration (May 2009) or
    (d) Date of 25 % completion of House (Dec 2009)?

    2. As per IT Rules the gain on LTCG can be spent for construction of house within 3 years from the date of sale of property. If he sells the PUDA property in May 2011, can he draw the benefit of LTCG for the payments for Bangalore Flat scheduled in Jul 2011, Jan 2012, Jul 2012?

    3. As per the Clause 54 of IT on LTCG, the income from the LTCG can be utilized for purchase of house within a period of one year before or two years after the date of purchase of house or within 3 years in construction, of a residential house. My question is the Bangalore Flat under construction by AWHO will fall into which Category for the purpose of exemption from LTCG i.e.
    (a) Construction category where the period given is 3 years or
    (b) Purchase category where the period is one year before or 2 years after the date of purchase of house
    4. How can he get max exemption from LTCG if he sells his PUDA house and what should be the likely date for selling the PUDA house to gain maximum benefit?
    I shall be very grateful if my above queries are answered.
    Thanks and regards,
    GG Singh, Delhi
    9958493136

  161. Could you please let me know that if I sold a house this year whether the profit will be based on the sale price as indicated in the deed or the valuation of the property?

  162. Sir,
    I bought plot in 2003 wort 630000. I raised construction in

    2009 worth 27 lac and sold the house in 2010 worth 40 lac.
    Kindly help me in calculating capital gain.
    Would it be STCG or LTCG?

  163. I have started a company in 2006 (initial investment was 34000), the company got acquired in 2010 (say for INR 3 cr, I received around 1 cr).

    Thus, I am liable for a LTCG tax. In this case indexation doesn’t make sense, since my cost of acquisition was very minimal.

    My question is can I be taxed at LTCG rate of 10% without indexation or I be liable for 20% of LTCG tax.

    Please reply at the earliest as I am in a limbo.

    Best regards,

  164. Hi,

    You have mentioned that STCG will be levied on equity mutual funds sold off market. I use ICICIdirect to purchase and redeem mutual fund units. In case i hold onto the units of an equity mutual fund for more than 3 years and then redeem it online, would that count as an off market transaction?

  165. sir
    if my business income is 150000 and my long term capital gain is 300000 my total income is 450000 how i calculate the income tax

  166. Anonymous says:

    Hi Raag,

    Will be deeply obliged for your clarification on below poser:

    My mother purchased a built house for Rs 5 Lakhs in 2007 & agreement was duly registered at registrar office etc. The seller was my father who had built the house in 1993.

    I am the only son. Now she wishes to either gift or will this house to me.Which is better option out of above 2 & what are cost implication in terms of any taxes etc for me in each case? Today the market value is Rs. 1 crore. If I sell this house, what will be capital gains implication ? Which year’s indexation cost will be taken, 1993 or 2007 or date when house is taken up by me either under gift deed or inheritance after lifetime of my mother .

  167. i have shares worth 13$ for a value of 2 lakhs INR. I got them through my company at 6$ each. It was one year from the date i got them. Now i’m going to sell them.
    please tell the tax treatment if i were to sell the above!!!…

  168. With this comprehensive article, I have cleared one of my old doubts. Thanks for your detailed information on STCG & LTCG.
    Now, I came to know that gains from Equity mutual funds (held for more than 1 Year) are tax free. Am I correct ?

  169. Hi ,
    I have a land which i am planning to sell. The current valuation of the land is approx 70 lacs . The land was purchased in late 80′s for 90k .
    The current circle value of the land is approx 55 lacs . I am trying to figure out how to go about the sale .
    In the event the registration is done at 60 lacs . what are my tax liabilities .
    I have booked a apartment about 1.5 yrs back which is under construction and would be ready for possession by June 13 .I have already paid the approx amount of 20 lacs from my savings and the property price is 40 lacs .
    I also intent to pick up a ready property in another city for 45 lacs .
    Thus i wish to split the amount of 60 lacs that i would be getting as 40 lacs going towards the new ready residential property i intent to buy and pay up the remaining 20 lacs as one time payment towards the existing property .

    Can you please let me know the tax liabilities i need to take care off . Is it that i can be exempted from capital gains tax in the above scenario ?

    Please advice

  170. vivekmaithel40 says:

    Hi,
    I had sold my house on 31-01-2008 for Rs 45 lacs and invested the long term capital gain of 33.5 lacs to book a house with a builder in Delhi. The builder issued me an allotment letter. i was told that i have to hold the house for 3 years before selling it again. Will the 3 years be calculated from the date of allotment as i had paid the entire amount for the flat and can i sell the flat now to purchase a new house

  171. Dear Sir
    I have purchased house in 1985 under HUDA LIG Scheme in karnal, Haryana. I have paid my all EMI and in the mean time i have also received rent. But i completed my formalities of Registry of house in 2011. Now i going to sell this house.
    My seller is taking loan on my house and seller bank will issue cheque on my name of Rs. 14 Lac.
    I have no PAN Card and i m Car Driver in Pvt. Ltd. Co. I have only one Residential house that one i m going to sell. In delhi, my wife name have residential house where we are living. So, please tell me is this amount of Rs. 14 lac is completely exempt.
    Thanking you

  172. Sir

    You said in the article:

    [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.]

    I want to know what will be the position of capital gains arising on sale of the following:

    1. When shares are held for a long time say 15-20 years, in ones name (before STT period) and held now in physical form and/or demat form.
    2. Shares received (a) as bonus and (b) as right issue, (c) as GIFT from someone including blood relatives and (d) as legal heir after death of a person (I think there is no STT involved in these 4 cases)
    3. When no STT was paid, like in off market trading, for (a) long time, more than 3 years, (b) less than 3 years but more than 1 year and (c) less than 1 year. Yes, you wrote “This is true even for shares or equity mutual funds sold off market” but I want to know you wrote this is in context of time period (less than 36 months) or in context of STT not paid or irrespective of time period and STT both or any other combination

    Also what type of assets category these will fall in (a) Capital Asset or (b) All Other Capital Assets

    Thanks

    Saumya

  173. i have purchased (delievery base) equity shares 15 years before but i have not shown this shares in IT returns. now i want 2 sell it, so sud i have 2 pay sum tax on it after selling ??? please suggest.

  174. Kaushik Mitra says:

    I booked a residential house ( under construction) and was given an allotment letter on 28th September 2005. The sales deed was however, signed and handed over on 28th January 2006. I kept on paying instalments till October 2008, after which I transferred the property before taking possession of the house. I sold it at a price higher than the buying price. Now after selling in October 2008, I bought another house, whose price was much higher than the capital gained for residential purpose and I stayed in that house ever since.

    My question is as follows:

    1. Since I sold my property before taking possession of the house, but after 3 years of getting the allotment letter, would it therefore be classified under Long Term Capital gains? If so, hope I would be eligible for tax exemption.

    2. Will the date of allotment ( vis-a-vis the date of sale deed) of the residential house be taken into account for considering whether this is Long Term of short term capital gains?

    3. Since I invested the entire gains into another property where I am staying ever since, would the capital gained be exempted from tax?

    Would be obliged if I have the answers to the above.

  175. I booked my flat in 2005 after taking a Loan of 11.5 Lakhs. Total cost was 14.5 Lakhs. I took the possession and registry in July 2009. I sale deed the value of the Flat is shown as 28 Lakhs as per circle rate and charges were taken on the value 28 Lakhs. I sold the property in Aug 2011. Please inform :-
    1 If this is short term gain or Long Term
    2. what is the cost price for the Flat for calculating Capital Gain. Is the capital gain ( Sell price – 28 Lakh) or (Sell Price – 14LAkh )
    3 Can we add registry charges I paid at the time of first registry to my cost for calculating Gain.
    4 Can we show any other expenses to my cost for calculating Gain.

    Regards
    Kapil

  176. Abhijit Pawar says:

    Dear Sir,

    I was trading in Future & option from june 2009 to Sept 2011 , i had a total loss of 135000 ,how can i claim it under income tax

  177. Hi,

    my mom purchased property in 93 for 40k, now she plans to sell it for 40L. 20L is the actual land cost and remaining is (easy guess). she is a housewife, with less pension 5k. Doesnt even have a pan card. Let me know how much tax she needs to pay for LTCG. Also are there other ways to avoid tax, and if so tell me the time limit. Thannks

  178. I have purchased a flat in Feb 2009. Our Agreement to sale date was in Dec 2009 and Sale deed date was in Feb 2009. Now, I am selling that flat. My question is, which date will be considered for the capital gain tax? Agreement to sale date or sale deed date?

  179. Hi all,
    I had a land in which I got a share of the Built up Area.. Amounting to 2 Flats which I retained and some additional area which I sold to the builder @ Rs 2K.
    However the builder sold it @ Rs 3K.
    Net cash i received from this sale proceeds was around Rs12L which now shall be treated as STCG.
    Can I argue saying it was not a capital gain but a capital Loss..?
    Can you advise me a way to save the taxation?

  180. I sold a flat and gained 20 lacs as LTCG in july 2011. I have used all the 20 lacs some where else.
    Can I save this LTCG in following manner. I want to purchase a new flat of 25 lacs. I will take Housing loan of 25 lacs.
    Can this housing loan be considered as investment against LTCG.

  181. jigar shah says:

    how to classify sort trm long term profit on shares.
    plese give me guidline, in excel how to calculate with the formulas, plese give me formate in excel & tally, how to maintain stock

  182. Tarun sharma says:

    Dear sir ,
    I bought one house at cost of 40 lac in April-2011, now i want to buy bigger house in that same region whose buying cost approx will be 70 Lac . so i need to sell my existing house whose selling would be around 48 Lac in Dec2011. Kinldy advise how much tax i need to pay on selling the house or advise to adjust that amount agisnt new house buying.

  183. sir i purchased land outside NAC area in october 2011 at the rate of 50 lakhs and after thee months i m getting offer for 1.5 crores . i want to know that wat will b the taxable amount if i sell it now and is there any kind of procedure under which i can save my tax. kindly reply as early as possible

  184. My income on bank deposits Rs 80,000/-per year, short term capital gain Rs 2,70,000/- per year (likely) for FY 2011-2012 , and I pay Rs 43,200/- per year as house rent.I am a retired person with no pension.Kindly inform me whether the whole House rent amount is exemptable or not?Is there any ceiling limts. Kindly inform me whether i am eligible for standard deductions 33.3% as applicable to employees.Also kindly inform me the present STCG tax rate for FY 2011-2012/ AY 2012-2013Is it 10% or 15%?.
    Regards

  185. vamshadhara says:

    hi i am investing around 2ooo.Rs every month in reliance gold savings fund and Rs.1000 every month in Reliance equal opportunities fund from september. My query is that since i m investing every month as a SIP transaction how will my STCG or LTCG be calculated if i want to exit at a certain point of time?

  186. Dear sir,
    i have brought up a land for Rs.12,00,000/- in the year 2000 and sold this year i.e 2011.
    within 36 months i m planing to buy a house worth Rs45,00,000/- and invest the remaining amount in an fixed deposit for my parents who are senior citizen. please can you inform me what will be my taxable income???

  187. Deepak Jain says:

    This site is realy good

  188. Raj Kumar Jain says:

    I HAVE PURCHASE A PLOT OF LAND IN THE FY-2003-2004 FOR Rs. 258140/- AND SOLD IT DURING THE FY 2011-2012, I HAVE ALREADY TWO FLATS SHOWN IN MY I T FILE, AND I AM GOING TO PURCHASE A NEW FLAT . CAN I GENT EXEMPTION IN LTCG FROM SALE OF PLOT OF LAND

  189. Dear Raagav,
    I’ve 2 queries regarding house property LTCG -
    1) Can i add cost of doing interiors in house incurred on it prior to moving in, to the purchase cost? and can claim indexation?
    2) Is brokerage paid to Broker during sale post 3 years a deductible expense from sale proceeds to calculate net sale price.

  190. I HAVE SOLD UNITS OF ICICI PRUDENTIAL FLEXIBLE INCOME FUND REGULAR GROWTH ON 7.1.2012 WHICH WERE PURCHASED BY ME ON 15.8.2011 AND GOT A GAIN OF APPROX. 20,000/-. KINDLY ADVISE WHETHER THIS GAIN OF 20,00/- IS SHORT TERM CAPITAL GAIN OR LONG TERM AND WHAT WILL BE THE TAX TREATMENT OF THIS GAIN. WILL I HAVE TO PAY FULL INCOME TAX AS PER MY SLAB RATE OR ANY SPECIAL RATES WILL APPLY. ALSO INFORM WHETHER CAN THIS GAIN BE SET OFF AGAINST ANY SHORT TERM CAPITAL GAIN ON SALE OF SHARES ON WHICH STT HAS BEEN PAID.
    THANKS

  191. I have sold my residential plot after 5 years of purchase. I wish to invest the sale proceeds(LTCG) in purchase of a new Flat. but, I already own a house(self constructed). Am I eligible to avail tax relief for the LTCG ivested on new Flat?

  192. can Long Term Capital Gain on sale of house propert be set off against Long Term Capital Loss of shares??

  193. S.Ramachandran says:

    Good article. I need some clarification.
    I have sold my residential flat in September 2011 and I have to file return during the finacial year. The flat was purchased by me during 1984-85. The purchase price was paid by me in five instalments. Few instalments were paid during 1981-82 and 1983-84. While arriving at the indexed cost of the purchase consideration I have taken into account the specific year of payments of instalments and calculated the indexed cost accordingly. In this method I get an enhanced purchase cost. Please guide me whether this is in order. I was working in a Bank. I purchased the flat from the Bank employees cooperative society. As per the rules of the society the flat was registered in my name after 10 years though I was given possession during 1984-85. I have taken the year of purchase as 1984-85 for indexation as the puchase price was paid by me in full by that time and the flat was handed over. I think this is in order. Please advise….Thanks a lot.

  194. I have two residential house property, one is long term and second is short term. Now i got some long term capital gain from selling some there property. So my question is that can i invest my long term capital gain in the house property ?

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