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Jun 26, 2024 · Capital gains from asset sales attract taxes, but exemptions can reduce tax liability. Determining short/long-term capital gains is crucial due to varying tax rates. Various exemptions available, such as on sale of residential property or agricultural land.
5 days ago · Long-Term Capital Gains (LTCG) that exceed Rs. 1 lakh in a financial year are subject to a 10% tax rate. Gains up to Rs. 1 lakh in a financial year are exempt from taxation. Other assets ( such as real estate, land, unlisted shares, etc.): LTCG is taxed at 20% after taking the indexation benefit.
Oct 27, 2023 · Exemptions from Capital Gains. The Income-tax Act allows exemption from capital gains tax if the amount of capital gains or sale consideration, as the case may be, is further invested in specified new assets. These exemptions are provided as per the following sections:
5 days ago · Short-Term Capital Gains (STCG) on listed shares and equity-oriented mutual funds are subject to a concessional rate of 15%. Other assets ( such as real estate, land, unlisted shares, etc.): STCG is taxed at normal slab rates applicable to the taxpayer. Short-term Capital Gain Tax on Shares.
Apr 3, 2024 · Understanding exemptions under capital gains is crucial for taxpayers to optimize tax liabilities. Sections 54, 54B, 54D, 54EC, 54F, 54G, and 54GA offer various benefits to individuals and entities.
Apr 21, 2023 · In India, the long-term capital gain tax is currently 20% (with indexation benefit), while the short-term capital gain tax is taxed at the applicable slab rate for the individual. Capital Gain exemptions Here are some of the major types of capital gain exemptions available under the Income Tax Act, section wise: 1.
Here is a list of a few basic exemptions concerning long-term capital gains for the year 2021-2022 –. Resident individuals who are below 60 years with an annual income of Rs. 2.5 Lakh. Resident individuals who are 60 years or above with an annual income of Rs. 3 Lakh.
Exemption Under Sections 54 E, 54EA, and 54EB – Profits from Investments in Certain Securities. Frequently Asked Questions. What is a Capital gain tax in India? In simple words, a capital gain occurs when you make a profit by selling something valuable, like property or investments.
Jun 28, 2024 · The exemptions on tax are as follows: Short term capital gain arising on transfer of agricultural land (Section 54B): The capital gain earned here will have to be reinvested in the purchase of agricultural land. The same exemption is allowed for long term capital gain as well. The land must be purchased 2 years from the date of sale or transfer.
According to the Income Tax Act, assets received as gifts or by inheritance are exempted in the calculation of income for an individual. Buildings, lands, houses, vehicles, Mutual Funds, and jewelry are a few examples of capital assets. Also, the rights of management or legal rights over any company can be considered as capital assets.
