Capital gain tax in India
Capital gains tax is a tax levied on the profit realized from the sale of an asset. In India, capital gains tax is divided into two categories – short-term capital gains and long-term capital gains.
Short-term capital gain tax in India is applicable when an asset sell within 2 years of its purchase. The tax rate for short-term capital gains based on the individual’s income tax slab rate.
To Visit https://www.incometax.gov.in/
Long-term capital gain tax in India is applicable when an asset sold after 2 years of its purchase. The tax rate for long-term capital gains is 20% (plus applicable surcharge and cess) for most assets, except for listed securities and equity-oriented mutual funds, where the tax rate is 10% (plus applicable surcharge and cess) if the gains exceed Rs. 1 lakh in a financial year.
For example, if you bought a house for Rs. 50 lakh and sold it for Rs. 70 lakh after holding it for 3 years, you would be liable to pay long-term capital gains tax on the Rs. 20 lakh profit at a rate of 20% (plus applicable surcharge and cess). The tax payable would be Rs. 4 lakh.
For further details access our website https://vibrantfinserv.com
