Sale of club membership

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Querist : Anonymous

Querist : Anonymous (Querist)

11 May 2016 Dear Sir,

how I disclose capital gain on sale of club membership in income tax return

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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12 May 2016 When you have purchased the club membership by payment of deposit money you must have shown as appearing on assets side. If it is above 3 years and now you are selling it then the difference between the amount received and amount previously paid by you will be the capital gains.

Rupesh Jain

Rupesh Jain (Expert)
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13 May 2016 if you buy the same, then you calculate the gain diff of the sell and cost if old than three years.

Querist : Anonymous

Querist : Anonymous (Querist)

23 May 2016 cost indexation require

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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22 July 2025 Here's how to treat the **sale of club membership** for capital gains in your Income Tax Return (ITR):

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### 1️⃣ **Is club membership a capital asset?**

* Generally, **club membership is considered a capital asset** if it is transferable (can be sold).

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### 2️⃣ **Capital Gains Calculation**

* **Holding period:**

* If you held the membership for **more than 36 months (3 years)** → **Long Term Capital Asset (LTCA)**
* If less than 3 years → **Short Term Capital Asset (STCA)**

* **Cost of acquisition:** The price you originally paid to buy the membership.

* **Sale consideration:** The amount you receive on selling the membership.

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### 3️⃣ **Taxable Capital Gain**

* **Capital Gain = Sale Price – Cost of Acquisition**

* If LTCA (held >3 years), **indexation benefit** applies on cost, i.e., you adjust the purchase price using Cost Inflation Index (CII) to calculate indexed cost.

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### 4️⃣ **Disclosure in ITR**

* Under **Schedule CG** or **Capital Gains section** of your ITR:

* Mention the details of the asset:

* Description: Club Membership
* Date of Acquisition
* Date of Sale
* Sale Consideration
* Cost of Acquisition (Indexed cost if LTCA)
* Capital Gain (Short term or Long term)

* Attach computation details if required.

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### 5️⃣ **Summary Table**

| Holding Period | Tax Treatment | Indexation Benefit |
| ------------------------ | ------------------------------------------ | ------------------ |
| More than 3 years (LTCA) | Long term capital gains taxed @20% | Yes |
| Less than 3 years (STCA) | Short term capital gains taxed as per slab | No |

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If you want, I can help prepare a sample capital gains calculation sheet for club membership sale!

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