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38 Points
Joined October 2012
In terms of steps if I need to Specify
1.find the holding period of the capital asset
2.decide whether the asset is Long term or short term based on holding period
3.
a)if long term asset apply the indexation to the cost of the capital asset reduce the indexed cost and the cost of sale if any from the sale value.
b)if short term asset there won't be any indexation and u just need to find the difference between the sale value and the cost/wdv.
4.once u have found the taxable value in step 3 apply the rate of tax on the taxable value pl take due care in finding the right rate of tax .
The above steps are just a broad manner in which LTCG/STCG can be calculated my advice would be to read the books on taxation as the concept of Capital gains runs into pages and it is just not wise to ask such a huge concept through this medium .