Capital Gain Tax in India – When you need to Pay

An Infographic explaining When you need to Pay Capital Gain Tax in India.

STCA – Short Term Capital Asset LTCA – Long Term Capital Asset
STCG – Short Term Capital Gain LTCG – Long Term Capital Gain
HP – Holding Period

 

capital gain


'Capital Gain Tax in India – When you need to Pay' have 14 comments

  1. June 15, 2013 @ 1:05 pm Arun Kumar

    Dear Sir,

    After reading all available posts about ways to take exemption from Long term tax gain, i still have below questions unanswered. I will highly appreciate if you can help me understand these –

    For Long term capital Gain cases (residential property held for 3+ year)-

    1) When calculating cost of acquisition, should i consider the total cost i booked the flat for OR the money that i paid till the time of selling the flat?

    2) When calculating the “full value of consideration”, should i consider the total amount on which the flat is sold (the seller will pay part of this amount to the builder as the remaining construction of flat happens) OR the amount which the buyer is paying to me?

    3) Which date should i consider as my purchase date – Date when i filled the flat booking form OR the date when I signed the builder-buyer agreement with the builder.

    4) For taking exemption under section 54, can i book a newly launched property? If yes, then which date to be considered as my buy date – when i fill the booking form or when i sign the builder-buyer agreement? Also, what if my capital gain is 50 lacs but i pay only 20 lacs to the builder till my next return filing date. Can i keep this money with me?

    5) If I bought a property on my wife’s name but i paid all the installments from my bank account, how can i get the sale consideration in my bank account and be eligible for exemption under section 54 if i book a new flat under my name within two years after selling the property?

    Reply

  2. September 14, 2013 @ 4:58 am Prakash Gupta

    Thankx for this… And please keep posting… 😀

    Reply

  3. July 2, 2014 @ 10:35 am GSR

    Sir, i have sold my Falt in july’2013, what will be the capital gain,
    my place is Mogapair Eri Scheme, Chennai, Tamil nadu,
    and also adv how to get exampted paying capital gain,

    b/r
    gsr

    Reply

    • July 16, 2014 @ 6:49 am Sudeep

      Kindly give the sale value and purchase cost of that said property. You can contact me for any info. [In order to protect the privacy of our users a Phone Number or Email Id is removed from this comment]

      Reply

  4. January 7, 2016 @ 5:18 am Sims

    Sir,

    I want to calculate the Capital Gain on Shares which I had acquired through ESOP and have later sold them. At the time of purchase I had for the shares at the rate my company was offering to the employees and that was less than the Market rate. Apart from that I had to pay some tax component to my employer as well. Later I have sold those shares through a broker. Kindly tell me the way to calculate the Capital Gains on these shares.

    1) My broker’s website requires me to fill up Purchase price. This the Market rate on the day of exercise or the price offer by the company?

    2) Where should I fill up the Tax part that I have paid to my Company and What should be the BrokerageSTT etc?

    Reply

  5. July 19, 2016 @ 12:21 pm Sanjeevkalra Kalra

    Capital gain on jewelry, if woman takes gift in 1999&sale the jewelry in July 2016

    Reply

  6. July 19, 2016 @ 12:28 pm Sanjeevkalra Kalra

    In e-filing which colum I will fill the STCG ?

    Reply

  7. March 29, 2017 @ 4:23 am Pav

    I sold a very small piece of residential land in August 2014, it is long term capital gain and I am sole owner kindly clarify if I need to buy another property before financial year or before filing tax return that is should I invest by 31 March 2017 or by 31 July 2017 which is within 3 years of capital gain before filing my tax return Does capital gain rule specify if I should buy land or flat Also assuming I shall use my entire my capital gain amount in buying flat or land is it necessary if land is purchased I need to construct a liveable unit All my funds are in SBI capital gain account And is it necessary that I need to buy some property to save capital gain is there any other investments to save capital gain, I have capital gain of 25 lakhs my mail pavitar78 at gmail dot com Thank you

    Reply

  8. April 15, 2017 @ 11:20 am Ravi

    I case. My mother sells her property inherited from my father on his death, and property is 50 years old how to calculate long term capital gains tax. Mother is 85 years old

    Reply

  9. June 21, 2017 @ 1:05 pm ashok

    Under the new CII, if a house was bought by a person “X” at say Rs 8 lakhs in 1997-98 and sold at 67 lakhs in 2017-18. What will be the capital gain tax. Can some one help me with calculations

    Reply

  10. June 24, 2017 @ 10:50 am Deepak

    In case where a property dispute has been settled. The said property belonged to my father to which i along with three of my brothers had rights. However the elder brother had claimed sole ownership and had sold the property to a third person After nearly 15 yrs of legal battle this third person has paid the remaining brothers their share. My question is since the property was not transferred to our name does the whole amount be capital gain. Is the fact that a third party paid us consideration effect this. The property had been purchased way back in 1981. Can the lawyers fees be deducted from the consideration while calculating the gainPlease revert.

    Reply

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  12. June 9, 2018 @ 6:36 am Rajagopalan.V

    Der Sir, I will be thankful if you clarify on the following. I am selling my house in PUNE after 25 years of acquisition. The total cost of land and construction was Rs 4.00 lacs. Now i have contracted to sellit for Rs 2.00 crs. Pl tell me what will be the capital gains tax i need to pay if i do not invest in amother property.

    Reply

  13. July 3, 2018 @ 7:41 am S.M.VASHISHTHA

    I have two property. 1st property purchased in November’ 2011 in 10 lacs and sold out in June’ 2018 in 50 lacs.
    2nd property purchased in May, 2011 in 42.45 lacs and sold out in October, 2018 in 77 lacs. Kindly let me the
    formula for capital gain of both the property. I am living in 2nd property also.

    Reply


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