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Payment of capital gains Tax pl

prabhakar nath Sharma (14 Points)

22 April 2023

pl guide in which situation capital gains na tax to be paid and how much % ..

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (161283 Points)
Replied 22 April 2023

Refer:: 1. https://cleartax.in/s/capital-gains-income

OR 2. https://tax2win.in/guide/capital-gain-tax-in-india-ltcg-stcg

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ashish (ca) (82 Points)
Replied 22 April 2023

Capital gains tax is a tax levied on the profit made from the sale of an asset. The amount of capital gains tax you need to pay and the rate at which it is levied depends on the type of asset and the duration for which it was held before it was sold.

As per the Income Tax Act, 1961, capital gains are classified into two types:

Short-term capital gains (STCG): This is the profit made from the sale of an asset that has been held for less than 36 months (24 months in case of immovable property like land or building). STCG is added to the taxpayer's income and taxed at the applicable slab rate.

Long-term capital gains (LTCG): This is the profit made from the sale of an asset that has been held for 36 months or more (24 months in case of immovable property). LTCG is taxed at a flat rate of 20% (plus applicable surcharge and cess) after allowing for indexation benefit, which adjusts the purchase price for inflation.

Some important points to keep in mind while calculating capital gains tax are:

Deductions: Certain expenses incurred in the acquisition and sale of the asset, such as brokerage fees and stamp duty, can be deducted from the sale proceeds to arrive at the net sale price.

Exemptions: Certain types of assets, such as shares and mutual funds, are exempt from LTCG tax if they are sold on a recognized stock exchange and Securities Transaction Tax (STT) is paid