Complete structure of calculation of Capital Gain

Complete structure of calculation of Capital Gain

Complete structure of calculation of Capital Gain Sale proceed of a Capital Assets                                                 = ... 12:41 AM

Complete structure of calculation of Capital Gain

Sale proceed of a Capital Assets                                                 =

1.        Cost of acquisition of Assets                                      =

                       +

 Cost of improvement of Assets                                   =

                       +

 Cost of inflation index (in case of

 Long term capital assets)

2.       Commission/ Brokerage                                              =

                                 

                                           Capital Gain                   (Total)

In some cases this capital gain is taxable but sometimes some exemption rules are applicable on capital gains. If within 2 year Assesse purchase a new house then full amount of Capital Gain is taxable.

But if he is not purchase at that time or he may purchase a house in the next year then they can deposit this ( Capital Gain) amount in CAPITAL GAIN ACCOUNT SCHEME 1988 opened in State Bank of India.  If he is not purchase any home within two year than whole amount of the account is taxable.

Cost inflation index given by Income tax authorities at every financial year. If short term capital assets is sold  than index is not calculated.

Long term capital gains are separately taxable because calculation is totally different from others. Only 20% of the total Long term capital gain is taxable whether assessee completes the slabs. (if they have LTCG amount ).

Capital Assets

Any kind of assets which are held by assessee during the previous year whether they are used in business or profession or his/her business. It movable, immovable, tangible or intangible and personal assets also.