Capital Gains Tax is defined under income tax act as profit or gains arising from the transfer of capital assets effected during the previous year is chargeable to income-tax under the head ‘Capital Gains’.
So you have to pay income tax on any capital gains during previous year. But income tax will not be charged as per the income tax slab or rates. It will be charged as per capital gains tax laws. We are here giving the capital gains tax rates chart including short-term capital gains and long-term capital gains.
Capital Gains Tax Rates Chart (A.Y.2019-20)
| Particulars | Short-Term Capital Gains Tax Rates | Long-Term Capital Gains Tax |
| Sale/Transactions of equity shares/unit of an equity oriented fund/unit of business trust which attract STT | 15% | 10% 1 |
| Sales Transactions other than Mentioned above | ||
| Individuals | Progressive Slab Rates | 20% with indexation or 10% without indexation for listed securities/units/zero coupon bonds |
| Firms including LLP | 30% | |
| Resident Companies | 30% | |
| Overseas Financial Organisations specified in section 115AB | 40% corporate | 10% |
| 30% (Non Corporate) | ||
| FIIs | 30% | 10% |
| Foreign Companies | 40% | 20%/10% |
| Local Authority | 30% | 20% with indexation or 10% without indexation for listed securities/unites/zero coupon bonds |
| Co-Operative Society | Progressive Slab Rates | |
Notes:
- Unlisted shares of company would be treated as short-term capital asset if it is held for a period of 24 months or less immediately proceeding the date of its transfer.
- Long term capital on sale of listed mutual funds (other than equity oriented funds) will be taxed at the flat rate of 20%.
- Exemption from tax on Long term capital gain on sale of residential property or any other asset is allowed on re-investment in only one residential house in INdia.
- The period of holding of immovable property (being land or building or both) is 24 months (on or after 1-4-2017).
- As per Section 10(38), the long term capital gain arising on sale of equity shares shall be exempt only if, the securities transaction tax has been paid a the time of acquisition of those shares.
The cost of acquisition of shares would be:
Higher of
1) actual cost at which shares are bought and
2) lower of following
- Highest price of securities as on 31-1-2018 and,
- Full value of consideration
Check Cost Inflation Index Here
Download Capital Gain Tax Rates Chart AY 2018-19
| Particulars | A.Y. 2018-19 | A.Y.2019-20 |
| Capital Gain Tax Rates Chart in Excel Format | Download Here | Download Here |
| PDF Format | Download Here | Download Here |
Computation of Capital Gains
Ascertain the full value of consideration received after transfer of any capital asset.
- Less: Deduct expenses for transferring of that asset like legal expenses, brokerage etc.
- Less: Purchase Value/Cost of acquisition/Indexed Cost of acquisition in case of Long-term capital gains.
- Less: Cost of Improvement/Indexed cost of improvement in case of long-term capital asset.
Balance is Gross Capital Gain/Loss
- Less: exemptions u/s 54, 54B, 54D, 54EC, 54F, 54GA, 54GB, and 54H.
Balance is Net Capital Gains/Loss which is chargeable to Tax.
The following table will help you to calculate capital gains tax as per rates/
Short-Term Capital Gains Tax Rates
Short-term Capital Gains are included in the gross total income of the assessee after allowing permissible deductions under Chapter VI-A, the total income is subject to tax at the rates given under income tax slab.
However, on transfer of equity shares, mutual funds subjected to Securities Transaction Tax, shall be taxable at a flat rate of 15%. Also deduction under Chapter VI-A shall not be allowable.
Mutual Funds Tax Treatment: Tax Deduction, Capital Gain & Dividends
Long-Term Capital Gains Tax Rates
Long-term capital Gains are subjects to flat rate of tax @ 20%. However, in respect of long-term capital gains arising from transfer of listed securities (other than units of mutual funds/UTI) or zero coupon bonds, tax shall be payable @ 20% of the capital gains computed after allowing indexation benefits or @10% of the capital gains computed without giving the benefits of indexation, whichever is less.
Notes on Capital Gains Tax Rates
- Long-term capital gains from equity shares or unites of any equity-oriented mutual funds, subjected to securities transaction tax, shall be full exempt. [sec. 10(38)]
- W.e.f A.Y.2015-16, long-term capital gains from unites of non-equity-oriented mutual fund, shall be taxable @ 20%. The concessional rate of 10% on long-term capital gains without indexation shall not be available.
- Deduction under Chapter VI-A will not be allowed for long-term capital gains.
- If there is a loss under any head (except-long-term capital loss) it can be set off against income from short-term capital gains, while computing the gross total income. [sec. 70(2) and 71 (2)]
- For A.Y.2019-20 onwards, if the amount of Long term Capital Gain (including LTCG on Unit of Mutual funds) in a year exceeds Rs. 1,00,000, the excess amount above Rs.1,00,000 is taxable at the rate of 10%
I have sold Agriculture Land in 2018-19. This property was parental property since more than 50 years above. ( Property was in the name of My Grand father than transfer to My father, after death of my father property transfer to my family member i.e. my self, brother and sister). So how I calculate tax liability.
My father bought 25cents of property in the year nov 1985 by paying 20000/-
Later he died and the property transfered to me on june 2013 . Now in 2018 September I had sold 6 cents from that for 18lakhs.
Do I need to pay tax
If so how much I need to pay in this case.
Purchased price 725000/ (seven lakh twenty-five thousand) on June 2013–sold For 13.25 lakhs Febr 2018…
No record on paper of brokerage of one lakh & 1 lakh on construction. what cuold be the tax.
I am retired person., no income EXCEPT Pension. pls
For AY 2018-19, in case of sale of Debt oriented Mutual Fund, whether the option for tax payment on the basis of 20% after Indexation or 10% without indexation which is more advantageous to the Tax Payer is still available or it is compulsory to go for 20% after indexation?
I have purchased a land of 2400 sq ft Oct 1981 for a consideration of Rs 2000/ . I have built house in 1986 and extended in 1998. I was staying in the house for the past 28 years. I have sold the house for consideration of Rs 60 lakhs in Jan 2018. I dont have any records for the expenditure incurred by me for construction and then the extension of the house. Can you help me im computing the capital gain
I am going to sell an ancestral property held for more than 10 years. The purchaser has offered me a price of 54 Lakhs though in the sale deed the Govt valuation of 30 Lakhs is only shown by him. He was insisting upon cash payment but I have refused it outright as it violates the laws. Now If I take the remaining 24 Lakhs in the form of Demand Draft/ cheque, whether I can show and claim the same as Long term Capital Gains to Income Tax. Then I can get exemption by investing in Long Term (54 EC) bonds, otherwise the rest 24 Lakhs how it it will be treated and what will be my income tax implications. Please guide.
Good
I am aged house wife and mother of a daughter and mother in law of my daughter husband.
my self (wife) husband, daughter – group A
my daughter and her husband – group B
group A invested petty amount on the land in 2000 for an amount of say Rs. 2.40 lacs (two lacs forty thousand) and sold in in the year 2015 for Rs. 63 lacs. Immediately booked new appartment for the total cost of Rs.108 lacs and paid all the 63 lacs. in this deal probably daughter in Group b will join as 2 holder by investing 54. lacs
what will be the capital gain as per index slab rate.
when the selling buying transaction to be declared in the tax returns
in case of it is invested in the another property whether capital gain tax exempted. group a husband already having one appartment and group a wife that my self name included in the agreements as joint loop interlink for joint owner ship.
As regards gropu b they have two apartments.. they had sold the third one which was originally cost for Rs. 54.00 lacs and sold amount Rs.100 lacs. Rs 1.00 crore kept in capital account.
Group b like to joint with group A (mother) in fresh investment on new appartment investing 50% of the cost comes to Rs. 54.00 lacs.
what will be the capital gain as per index slab rate.
when the selling buying transaction to be declared in the tax returns
in case of it is invested in the another property whether capital gain tax exempted. group B husband (son in law) already having one appartment and group B wife that my daughter name included in the agreements as joint loop interlink for joint owner ship.
in this group A & B joint purchase of appartment whether that can be allowed under capital gain exemptions.
after the death of group R the entire property will stand in the name of Group B and their children. pls advise
on capital gain index calculations.
when the details of sale/purchase to be declared individual rturns
will the income tax authorities rise any objection.
if tax liability is there what will be there for individually.
is there any case law settled in the higher court similar to above…deals
If the Short term equity gains are less than the taxable income tax slab of 2.5lakhs, can we claim the brokerage fee and other STT expenses paid during the year?
In ase of Capital gains with all other income doesn’t exceed the income tax slab of 2.5lakhs, can we claim the brokerage fee and other expenses inlcuding education cess paid?
Dear Sir,
One of my relative made profit & loss in selling of equity shares through Contract Note and Paid Security Transaction Tax @ the rate of 0.01% as per Contract Note. This includes long term ( more than 12 months ) & short terms also. Request to advice the applicability of tax for the above for filing of IT Returns for AY 2015-16 accordingly.
I incur loss on selling my flat, can i claim tax exemtion for the loss.Pl reply.
I need all rates for VAT CST GST TDS FBT with %.
WHETHER LONG TERMS CAPITAL GAINS ON EQUITY MUTUAL FUNDS REDEEMED AFTER FOUR TO FIVE YEARS ARE REQUIRED TO BE TAXED OR EXEMPT FROM TAX
Is not taxable provided Securities transaction tax is paid.your mutual fund must be listed on some stock exchange. There by u can claim exemption u/s 10(38).