Capital Gains Tax
How debt funds, gold and REITs are taxed now
Three asset classes, three completely different sets of rules, and all three changed in the last two years. Holding period…
Short term against long term
The holding period decides the rate. Listed equity shares and equity mutual funds are long term after twelve months; unlisted shares, land and buildings after twenty-four months; most other assets after thirty-six months. Short-term gains on listed equity are taxed at a flat rate; short-term gains on other assets are added to your income and taxed at your slab.
Property #
Sale of a house or land is reported in the year of registration. The cost of acquisition, stamp duty, brokerage and the cost of improvement all reduce the gain. Where the buyer is required to deduct tax at source on the sale value, that credit appears in your Form 26AS and must be claimed in the return.
Exemptions and set-off #
Sections 54, 54F and 54EC allow a long-term gain to be sheltered by reinvesting in a residential house or in specified bonds within the prescribed window. Capital losses can be set off against gains and, if unabsorbed, carried forward for eight assessment years — but only if the return is filed on time.
What you will need
- Broker capital gains statement for the financial year
- Mutual fund capital gains report from the registrar
- Sale deed and purchase deed for any property sold
- Proof of improvement costs and brokerage paid
- Details of any reinvestment made for exemption
Latest on Capital Gains Tax
Capital Gains Tax
Capital Gains Tax
Capital gains on shares and mutual funds: how the tax is actually computed
Holding period decides the rate, the fund category decides the holding period, and the broker statement rarely decides anything correctly.…
Latest articles
Capital Gains Tax
How debt funds, gold and REITs are taxed now
Three asset classes, three completely different sets of rules, and all three changed in the last two years. Holding period…
Capital Gains Tax
Capital gains on shares and mutual funds: how the tax is actually computed
Holding period decides the rate, the fund category decides the holding period, and the broker statement rarely decides anything correctly.…