![]() The actual cost of Rs 200 will be taken as the actual cost The fair market value on 31 January 2018 at Rs 150 is lowerĪs compared to the actual cost of the acquisition at Rs 200. The selling price of the asset and the fair market value,Įxample 2: You have purchased an equity share on 01įebruary 2017 at Rs 200. Long-term capital gains tax will be the difference between The FMV of Rs 250 is taken as the cost of acquisition. The actual cost of acquisition at Rs 150 is lower asĬompared to the fair market value (FMV) on 31 January 2018. Let us understand the calculation of long-term capital gainsĮxample 1: You have purchased an equity share on 01įebruary 2017 at Rs 150. The cost of acquisition of the asset is the higher of:Ī) The actual cost at which the asset is acquired.ī) The lower of the fair market value as of 31 January 2018Īnd the total amount you receive when selling the You must calculate the cost ofĪcquisition as per the formula shown below: To make sure that only the gains after 01 February 2018 areĬonsidered for taxation, the government introduced a The ClearTax LTCG Calculator will show you the long-term capital gain If you select the latter option, the calculator will ask you for the You must select the date of purchase of the units as after 31 JanuaryĢ018 or before 31 January 2018 as applicable. You then select the sale value of the investment.You must select the holding period as more than one year if you have The ClearTax LTCG Calculator will show you the short-term capital gain You must enter the sale value and the purchase value of the Held the investment for the requisite period. You then select the holding period as less than one year if you have If you choose after 01Īpril 2018, you will incur a long-term capital gains tax. ![]() Long-term capital gains tax on the investment. If you select before 31 March 2018, there is no You must choose the period when you sold the shares or equity-oriented The new rule was applicable for all the transactions that On equity-oriented instruments and shares was made during the Unionīudget 2018. The announcement for the introduction of the long-term capital gains tax You must pay short-term capital gains tax at 15% on the short-termĬapital gains which is Rs 1,00,000 *15% = Rs 15,000. You have held the shares for less than one year. The total purchase value of your 200 shares in MayĢ018 was Rs 2,00,000. (Rs you sold the 200 shares in January 2019 when the share price was ![]() You have to pay the long-term capital gains tax on the gains that areĪbove Rs 1 lakh in a financial year. You have held the shares for more than one year. You sold all the 200 shares at Rs 1,800 per share in January 2020. ![]() You purchased 200 shares of XYZ Company Ltd at Rs 1,000 per share in MayĢ018. You can understand the working of an LTCG calculator with this example. Gains above Rs 1 lakh in a financial year. The long-term capital gains tax is charged at the rate of 10%, on the Long-term capital gains tax is levied on the capital gains from sharesĪnd equity-oriented mutual funds, that are held for one year or more. Immovable Property such as House Property Short-term or long-term based on the holding period. The table below shows you how the capital assets are classified as ‘short term’ or ‘long term’ differs across various assets. Generated from an asset such as shares, bonds, commodities, or realĮstate that is held for the long-term. The LTCG or long-term capital gains tax is charged on the profit However, furniture and clothes for personal use, ruralĪgricultural land are not capital assets. The common examples ofĬapital assets include bonds, mutual funds, jewellery, patents, or The assets owned by an individual that may or may not be connected withīusiness or profession are called capital assets. ![]()
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