Easy stock profit calculator1/6/2024 How can Scripbox’s capital gain calculator help? These 36 months are calculated from the date the asset was bought by the taxpayer.įollowing table explains the type of gain for each asset’s basis on the holding period Asset LTCGĪ long term capital gain arises when an asset is held for more than 36 months. The period of 36 months is not valid across all the types of assets, There are assets with 24 months and 12 months tenure to qualify as an STCG. Short term capital gains arises when an asset is held for less than 36 months. i.e short term capital gains and long term capital gains. This is the holding period of the land i.e 24 months For instance, Mr.Arun bought land on the 10th of December 2017 and sold the land on the 10th of December 2019, he was holding the land for a tenure of 24 months. The holding period is the tenure for which the asset is held by a taxpayer. Now the type of capital gain and taxability depends on the holding period of the asset. Once a taxpayer sells an asset, he/ she incurs a capital gain. Hence this transfer of ownership does not qualify for capital gain. It is not a sale of an asset, there is no exchange of money in cash or kind. When a taxpayer inherits an asset or receives a gift, it is a transfer of ownership. Here the sale of an asset is a prerequisite to capital gain. The gain comes under the income category and hence a taxpayer needs to pay tax on the gain. The profit or loss from the sale of the asset is capital gain or loss. What is a capital gain?Ī capital gain arises when a taxpayer transfers or sells a capital asset belonging to him. ![]() These assets include land and house property, shares and stocks, bonds and debentures, mutual funds, and trademarks. It may be movable, immovable, tangible or intangible, fixed or circulating. Under the Income Tax Act, 1961 a capital asset is any asset irrespective of being held for business or personal use.
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