Income tax: This is how you can you seek exemption from long term capital gains
2 years, 5 months ago

Income tax: This is how you can you seek exemption from long term capital gains

Live Mint  

As the deadline to file income looms closer on July 31, taxpayers must be busy arranging the essential documents to be able to meet the deadline. For instance, the sale of immovable assets comes under long term capital gains if sold after two years and the time period reduces to one year in case of securities and mutual funds. To save capital gains tax, you can essentially do one of the two things: first is to buy a property and second is to invest in bonds under section 54EC of the Income Tax Act. One can also buy bonds for a part of the capital gains proceeds and pay tax on the remaining sum. Scenario B: Invest a portion of capital gains proceeds, say, Rs 15 lakh in the bonds, and pay tax on the remaining sum i.e., Rs 15 lakh.

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History of this topic

Tax harvesting: How to save capital gains tax? Details here
1 year, 9 months ago

Tax harvesting: How to save capital gains tax? Details here

Live Mint  

When it comes to taxes in India, most people only think about taxes on their salary or business income. 1.Long-term capital gains tax is applicable on investments sold after 12 months of purchase. 2.Short-term capital gains tax is applicable on investments sold within 12 months of purchase. Sell before gains exceed >₹1 lakh: Since long-term capital gains below ₹1 lakh …

Looking to invest in bonds but don’t know how it’s taxed? Here’s a key guide to help you
2 years, 2 months ago

Looking to invest in bonds but don’t know how it’s taxed? Here’s a key guide to help you

Live Mint  

The interest for investing in bonds has grown many folds in India in recent times on account of a good diversification option that bonds provide to investors. 10 lakh then tax on your annual interest of Rs 90,000 on bonds will be calculated as under: Highest Income tax slab on net taxable income: 20% Tax rate applicable on Rs 90,000 …

What are short- and long-term capital gains taxes?
2 years, 5 months ago

What are short- and long-term capital gains taxes?

Business Standard  

Any income or loss that is made from sale of equity shares is covered under the head ‘capital gains’. If equity shares listed on a stock exchange are sold within a year of purchase, the seller may make short term capital gain or incur a short-term capital loss. Any short term capital loss from sale of equity shares can be …

Understanding capital gains tax exemption under Section 54
2 years, 7 months ago

Understanding capital gains tax exemption under Section 54

Business Standard  

The profit earned from the sale of a house is taxed as a capital gain. If in this case, the seller was liable to pay income tax on capital gains arising from the sale of the old house, then it would impose a hardship on him. Under Section 54 of the Income Tax Act, a seller can av­ail of tax …

These simple steps will help you escape long-term capital gain tax on property
2 years, 7 months ago

These simple steps will help you escape long-term capital gain tax on property

Live Mint  

When you sell an asset be it equity or a property or debt funds, the profit accruing from it is labelled as capital gain. There are provisions in the Act that classifies these gains as long-term capital gain depending on how long the investors had continued holding these assets. The profits earned from selling any of these are termed as …

Budget 2020: Income tax rules on gains from gold, property sale, stocks likely to change; tax treatment for LTCG may be revised
4 years, 11 months ago

Budget 2020: Income tax rules on gains from gold, property sale, stocks likely to change; tax treatment for LTCG may be revised

Firstpost  

Among the Budget proposals being considered for the Union Budget is that the long term capital gains tax will be fixed at 24 months or two years uniformly for all asset classes In a major move, the government is likely to stipulate a uniform framework for all asset classes—equity, property and gold—for computation of capital gains. Long term capital gains …

Three different routes to save tax on long-term capital gains
5 years, 4 months ago

Three different routes to save tax on long-term capital gains

Live Mint  

Just like you pay tax on income earned, selling your capital assets too invites tax. “The exemption under section 54 is available when the capital gains from property sale are reinvested into buying or constructing maximum two houses. Remember, your exemption will be reversed if you sell this new property within three years of purchase and capital gains from sale …

Real estate investment: Homebuyer must look into taxation aspects of rental income, gains from property sale
5 years, 7 months ago

Real estate investment: Homebuyer must look into taxation aspects of rental income, gains from property sale

Firstpost  

An individual who has earned long-term capital gains on the sale of real estate can claim an exemption under Section 54 if he reinvests the gain in another property. Similarly, if a taxpayer sells the property after 24 months, then the income will be treated as long-term capital gains; this gain is taxed at 20 percent after indexation. Exemption available …

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