Capital Gain

Capital gain is termed as profit received from the sale of real estate, bonds and golds, where sale price exceeds the purchase price.

Capital gain is negative if the purchase price exceeds sale price and it is termed as loss.

The losses can be set off and carry forward.

Holding period= The period for which the asset is owned by the assessee

1. Immovable asset (Plot, Land, Shop, Godown, Building, Equity Shares unlisted, Other securities unlisted)

For this assets if the holding period is more than 24 months then it is Long term Capital gain and if it less than 24 months then it is short term capital gain.

2. Gold, other assets, Bonds, Debentures, Mutual Fund debt, GDR unlisted 115 ACA

For this assets if the holding period is more than 36 months then it is Long term Capital gain and if it less than 36 months then it is short term capital gain.

3. Equity shares listed, Mutual fund debt, Mutual fund hybrid, Zero coupon bonds, GDR listed 115 ACA

For this assets if the holding period is more than 12 months then it is Long term Capital gain and if it less than 12 months then it is short term capital gain.

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My capital gain is worked out at an amount more than actual profit I earned in the sale of my asset because of application of section 50C of the Income tax Act. Am I eligible for exemption of such deemed capital gains in entirety?
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How would I calculate the exemption u/s 54F in case only a part of the sales proceeds, and not the whole amount is invested in the residential property?
In this case, the exemption on capital gain will be allowed in proportion to the sales proceeds invested in residential property, i.e. Exemption Amt = Capital gain × (Amount invested/Net Sale consideration).
What will be the tax treatment if I sell the new property within three years of its purchase?
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Can I take a loan against these bonds or convert them to liquid within the five years period?
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Capital Gain

Capital Gain

Related Articles

My capital gain is worked out at an amount more than actual profit I earned in the sale of my asset because of application of section 50C of the Income tax Act. Am I eligible for exemption of such deemed capital gains in entirety?

How would I calculate the exemption u/s 54F in case only a part of the sales proceeds, and not the whole amount is invested in the residential property?

What will be the tax treatment if I sell the new property within three years of its purchase?

Can I take a loan against these bonds or convert them to liquid within the five years period?

What is Capital Gains Account Scheme?