CAPITAL GAINS TAX RULES

Rules to be followed

 

Income from any source attracts tax. Capital gains are also taxable in the hands of the seller. Capital gains from short term capital assets are called Short term capital gain, whereas gains from long term capital assets is known as long term capital gain.

Provisions for taxation of capital gains Under the Indian tax act, 1961 are as follows:

Taxation of short term capital gain

Taxation on short term capital gain is charged as per the income tax slab rates. Slab rates are as follows:

  • For individuals Below 60 years of age
  • For individuals above 60 years but below 80 years of age
  • For individuals above 80 years of age

However in some cases, tax is not charged as per Slab rates, but at 15%. Tax is charged at 15% if the following conditions are satisfied:
• The transaction takes through a recognized stock exchange and
• Such transaction is subject to STT i.e. Securities Transaction Tax. Taxation for Long-Term Capital Gain

  • Long term capital gain charged at 20%.
  • In case of Any long term capital gain arising from transfer of a listed security being an equity share in a company or a unit of an equity oriented fund is exempt under Section 10(38) provided such transaction is subject to STT i.e. Securities Transaction Tax.

Related Post: Capital Gain Calculation

Securities Transaction Tax (STT) is a tax payable in India on the value of securities (excluding commodities and currency) transacted through a recognized stock exchange. Such tax is not applicable on off-market transactions or on commodity or currency transaction.
Education cess at 2% and higher education cess at 1% is added to the amount of tax payable on both Short term capital gain and Long term capital gain.
File your income tax return with the help of experts at TaxRaahi.

Income Levels Tax Rates
Upto 2,50,000 Nil
2,50,000-500,000 10%
5,00,000-10,00,000 20%
Above 10,00,000 30%
Income Levels Tax Rates
Upto 3,00,000 Nil
3,000,000-500,000 10%
5,00,000-10,00,000 20%
Above 10,00,000 30%
Income Levels Tax Rates
Upto  5,00,000 Nil
5,00,000-10,00,000 10%
Above 10,00,000 20%

For more information related to income tax return filing or TDS return filing, Contact Taxraahi.

By | 2018-08-08T08:57:02+00:00 June 29th, 2016|Categories: Capital Gains|Tags: , |1 Comment

About the Author:

One Comment

  1. […] Previous Next […]

Leave A Comment