Tax on capital gains

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CA Priya (Querist)

20 October 2011 Why tax on long term capital gain is more than short term???????? Just want to know the logic behind.......

CA Vibhash Kumar Sah

CA Vibhash Kumar Sah (Expert)

20 October 2011 What is the Income tax rate on long term & short term capital gain presently?

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)

20 October 2011 There is no logic behind this, persons income taxed on the basis of slabs and total income below RS.500,000/- then tax on long term capital gains will be more than the short term capital gains.

CA Vibhash Kumar Sah

CA Vibhash Kumar Sah (Expert)

20 October 2011 Precisely, if we ignore the slab (as in case of company, firms etc) the tax rate for LTCG is lower that STCG (Opposite to Priya's query)and the logic is obvious- keep the capital assets for longer period and pay less Income Tax.

Mr. Dileep-Please correct if I am wrong...

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)

20 October 2011 you are correct..that is applicable ONLY for ind/huf/ aop.

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