Capital gain tax

How much % will be the short term capital gain tax?

And also is there any way to save on short term capital gain tax

As per normal slab rate it will be taxed....

No, there is no exemption in respect of Short term Capital Gain....

It means if my current yearly earnings are say 500,000 and i earn another 5,00,000 from the flat sale as profit then the total becomes 10,00,000. The STCG tax will be charged based on 2,00,000-5,00,000 -> 10 %

and 5,00,001 - 10,00,000 -> 20 %

Am i right?

And how can i save on the short term capital gain tax...can i invest the profit in FD of 5 yeras?

I have taken a home loan. Can the home loan interest be adjusted against the Short term capital gain?

10,00,000 gain..

1000000-2lac = 8 lacs

8lacs-3lacs , 3 lacs X 10 percent i.e 30000

remaining  5 lacs at 20 percent = 100000

130000

I have taken a home loan. Can the home loan interest be adjusted against the Short term capital gain?

No... I don't think.. it will be settled with that..

Hi Amith,

Your case falls under  STCG so it will be charged to tax as simple as other taxable income.

Hence you cant avail any deduction from the the STCG; having said that you can claim certain amount of deduction under the normal  deduction i.e., CHAPTER VI-A (section 80's)

But, for STCG there is no special provisions under the section 54's which are applicable for LTCG.

OK Thanks. Just need to understand one last time on below scenario:

Below are the dummy figures where i need help on the two questions mentioned below:

A - Profit by selling house 5,00,000
B - Holded the property for 2 years
C - Total EMI paid to the bank in 2 years = 3,00,000 (Interest Paid = 2,70,000 Principal Amt = 30,000)
D - Property Transfer Changes = 1,60,000
E - Interrest paid to builder on late payment = 30,000

F - Total Profit (A - D - E)= 5,00,000 - 1,60,000 - 30,000 = 3,10,000

Question

1> I have not claimed tax benefit on interest part paid to bank as EMI. Can the interest paid to bank treated as loss from house property. I mean i have paid interest and EMI to the bank in lieu of the property i holded.

 Can the interest be adjusted in the total profit. i.e. 3,10,000 - 2,70,000

2> Also, What are the other options by which i can save on capital tax?

Hi Amit,

I think your 5 lakh profit add in your income, then your Home loan repayment deduct as prinicpal u/s. 80c [limit 1 lakh] & Interest u/s. 24(b) in Income from house property.

then property transfer charges deduct from STCG.

Interest on builder is your capital exp., not taken into computation of income.

all the amount take year to year i.e. financial year.

Please take as suggetion or correct it, if i wrong

Thanks

Vikas

Hello Amit

below is the calculation