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    Calculation of Short Term Capital Gain Tax

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    SAGAR BALAGAR
    This document outlines the calculation of short-term and long-term capital gains tax in India. It provides the formulas for calculating capital gains by subtracting costs and exemptions from the full value of consideration. Short-term capital gains for equities are taxed at 15% plus surcharges if securities transaction tax applies, while long-term capital gains for equities are exempt from tax. For debt funds, short-term capital gains are taxed at normal individual tax rates and long-term gains are taxed at 20% with indexation plus surcharges if held for over 36 months.

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    Calculation of Short Term Capital Gain Tax

    Uploaded by

    SAGAR BALAGAR
    296 views2 pages
    This document outlines the calculation of short-term and long-term capital gains tax in India. It provides the formulas for calculating capital gains by subtracting costs and exemptions from the full value of consideration. Short-term capital gains for equities are taxed at 15% plus surcharges if securities transaction tax applies, while long-term capital gains for equities are exempt from tax. For debt funds, short-term capital gains are taxed at normal individual tax rates and long-term gains are taxed at 20% with indexation plus surcharges if held for over 36 months.

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    This document outlines the calculation of short-term and long-term capital gains tax in India. It provides the formulas for calculating capital gains by subtracting costs and exemptions from the full value of consideration. Short-term capital gains for equities are taxed at 15% plus surcharges if securities transaction tax applies, while long-term capital gains for equities are exempt from tax. For debt funds, short-term capital gains are taxed at normal individual tax rates and long-term gains are taxed at 20% with indexation plus surcharges if held for over 36 months.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    296 views2 pages

    Calculation of Short Term Capital Gain Tax

    Uploaded by

    SAGAR BALAGAR
    This document outlines the calculation of short-term and long-term capital gains tax in India. It provides the formulas for calculating capital gains by subtracting costs and exemptions from the full value of consideration. Short-term capital gains for equities are taxed at 15% plus surcharges if securities transaction tax applies, while long-term capital gains for equities are exempt from tax. For debt funds, short-term capital gains are taxed at normal individual tax rates and long-term gains are taxed at 20% with indexation plus surcharges if held for over 36 months.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Calculation of Short Term Capital Gain Tax?

    Particulars Amount

    Full Value of Consideration XXXX

    Less:
    (XXX)
    Expenditure incurred exclusively in connection with the transfer.
    Cost of Acquisition.
    (XXX)
    Cost of Improvement.
    (XXX)

    Less: Exemption under Section 54B (XXX)

    Short Term Capital Gain (1-2-3) XXXX

    Calculation of Long Term Capital Gain Tax?

    Particulars Amount

    Full Value of Consideration XXXX

    Less:
    (XXX)
    Expenditure incurred exclusively in connection with the transfer.
    Index* Cost of Acquisition.
    (XXX)
    Index* Cost of Improvement.
    (XXX)

    Less: Exemption under Section 54, 54EC, 54F, 54B, 54D, 54EE, 54GB (XXX)

    Long Term Capital Gain XXXX

    Taxation on Long-term and Short-term Gains

    Type of Capital Gain Tax Rate

    Long Term Capital Gain under Section 112 (when 20% + Surcharge and Education
    Securities Transaction Tax is not applicable) Cess
    Type of Capital Gain Tax Rate

    Long Term Capital Gain under Section 112A (when


    10% over and above INR 1 lakh
    Securities Transaction Tax is applicable)

    Short Term Capital Gain under Section 111A  (when Normal slab rate applicable to
    Securities Transaction Tax is not applicable) Individuals

    Short Term Capital Gain under Section 111A (when 15% + Surcharge and Education
    Securities Transaction Tax is applicable) Cess

    The taxability of gains from the sale of Equity and Debt mutual funds are different.
    Funds with more than 65% of the portfolio consisting of equities are called Equity
    Funds.

      Short Term Capital Gain Long Term Capital Gain

    Normal slab rate applicable to 20% with Indexation + Surcharge and


    Debt Funds
    Individuals Education Cess

    Equity 15% + Surcharge and Education


    Exempt
    Funds cess

    Note: Unlike Equity mutual funds, debt funds have to be held for more than 36
    months to qualify as Long-Term Capital Assets.

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