CAPITAL GAIN TAX

 

Long Term

Short Term

Period of Holding

In case individuals own an asset for a duration of more than 36 months, the asset is a long term capital asset. Debt-oriented mutual funds, jewellery, etc., that are held for a duration of more than 36 months will come under this category and there is no 24-month reduction period under such circumstances.

The below-mentioned assets are considered as long term assets if they are held for a duration of more than 12 months:

Zero coupon bond (not dependent on whether they are quoted or not)
Unit Trust of India (UTI) units (not dependent on whether they are quoted or not)
Equity-based mutual funds units (not dependent on whether they are quoted or not)
• Securities that are listed on a stock exchange that is recognised in India. Examples of such securities are government securities, bonds, and debentures.
Preference shares or equities that are held in a company that is listed on a stock exchange that is recognised in India.
 

In case assets are held for a duration of 36 months or less, it can be defined as a short term capital asset. However, for immovable assets such as house property, building, and land, the duration has been reduced from 36 months to 24 months.

Tax Rates

 

Condition

Tax Rate

Sale of equity shares

10% of the amount which is more than Rs.1 lakh

Except for sale of equity shares

20%

 

 

 

Condition

Tax Rate

When the transaction tax is based on securities

15%

When transaction tax is not based on securities

The gain is added to the income tax returns that must be filed, and the amount will be based on the income tax slab

 

 

 
Tax on Equity and Debt Mutual Funds

Gains made on the sale of debt funds and equity funds are treated differently. Any fund that invests heavily in equities (more than 65% of their total portfolio) is called an equity fund.

Funds

Short Term Gains

Long Term Gains

Debt Funds

At tax slab rates of the individual

At 20% with indexation

Equity Funds

15%

Nil

 

 

Cost Inflation Index Number


Given in the table below is the CII Number from the financial year 2001-2002 to FY 2018-2019:

 

Financial Year

Assessment Year

CII Number

2001-2002

2002-2003

100

2002-2003

2003-2004

105

2003-2004

2004-2005

109

2004-2005

2005-2006

113

2005-2006

2006-2007

117

2006-2007

2007-2008

122

2007-2008

2008-2009

129

2008-2009

2009-2010

137

2009-2010

2010-2011

148

2010-2011

2011-2012

167

2011-2012

2012-2013

184

2012-2013

2013-2014

200

2013-2014

2014-2015

220

2014-2015

2015-2016

240

2015-2016

2016-2017

254

2016-2017

2017-2018

264

2017-2018

2018-2019

272

2018-2019

2019-2020

280

 


 
     
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