Difference between write off and write back

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Neethi V. Kannanth (.) (19015 Points)
Replied 18 January 2021

What are the capital gain tax implications? Could you elaborate?

Mitali (Finance Professional) (10526 Points)
Replied 18 October 2023

There are two types of capital gains:

Tax Rate On Short-Term Capital Gains

When the securities transaction tax is not applicable - The STCGT is added to the ITR of the taxpayer and the individual is taxed as per his income tax slab
When the securities transaction tax is applicable - 15%

Short-term Capital Gain = Selling Price - (Cost of Acquisition + Incidental costs of transfer + Cost of improvement)

Tax Rate On Long-Term Capital Gains

Except on the sale of equity-oriented funds or equity shares - 20%
On the sale of equity-oriented funds or equity shares - 10% over and above Rs.1,00,000

Long-term Capital Gain = Selling Price - (Index Cost of Acquisition + Incidental costs of transfer + Index Cost of improvement)