What do you meany by Capital Gain Tax and how its calculated?
Question:What do you mean by Capital gain ?
Ans:In simple term capital gain when an individual sold their Asset at a price more than their purchase price.
Example : Mr X buy 50 Share of XYZ ltd at a price of Rs 100 per share on 1-jan 2017 and sold their share on 31-NOV 2017 at a price of 300 each . Capital Gain of MR X is
Capital gain= 300-100 = 200*100= 20,000
Question: Types of capital gain ?
Ans: Capital gains are two types:
1. LTCG= long term capital gain
2. STCG= Short term capital gain
Question : LTCG or long term capital gain?
Ans: When an individual hold their Asset more than one year and sold their asset after 365 days or one year from date of purchase of asset . This case applicable only in case of equity shares .
For example :Mr X buy 50 Share of XYZ ltd at a price of Rs 100 per share on 1-jan 2017 and sold their share on 5-jan 2018 at a price of 300 each . long Term Capital Gain of MR X is
Long Term Capital Gain: 300-200=100*200=20,000
Question: STCG or short term capital gain ?
Ans: when an individual sold their Asset with in one year from date of purchase the gain which he earned is Short term capital gain .
For example :Mr X buy 50 Share of XYZ ltd at a price of Rs 100 per share on 1-jan 2017 and sold their share on 5-Oct 2017 at a price of 300 each . Short Term Capital Gain of MR X is
Short Term Capital Gain: 300-200=100*200=20,000
Question : How much tax you have to pay on capital gain?
Ans: (1) STCG in above example is 20,000
Short term Capital gain tax= 20,000*15/100=3000
Mr X has to pay tax = 3000 on short term capital gain.
(2)LTCG: Long term capital gain in above example is =20,000
long term capital gain tax = NIL
Notes : (1)All the information which i give above is applicable only when you buy and sell equity shares and equity Mutual fund .
(2) In 2005 EX finance minister Pchidmbaram abolish the long term capital gain on sold of equity share is NIL.
http://www.moneycontrol.com/news/business/personal-finance/five-mistakes-you-must-avoid-while-investing-to-save-income-tax-2481675.htmlhttp://www.moneycontrol.com/news/business/personal-finance/five-mistakes-you-must-avoid-while-investing-to-save-income-tax-2481675.html
Ans:In simple term capital gain when an individual sold their Asset at a price more than their purchase price.
Example : Mr X buy 50 Share of XYZ ltd at a price of Rs 100 per share on 1-jan 2017 and sold their share on 31-NOV 2017 at a price of 300 each . Capital Gain of MR X is
Capital gain= 300-100 = 200*100= 20,000
Question: Types of capital gain ?
Ans: Capital gains are two types:
1. LTCG= long term capital gain
2. STCG= Short term capital gain
Question : LTCG or long term capital gain?
Ans: When an individual hold their Asset more than one year and sold their asset after 365 days or one year from date of purchase of asset . This case applicable only in case of equity shares .
For example :Mr X buy 50 Share of XYZ ltd at a price of Rs 100 per share on 1-jan 2017 and sold their share on 5-jan 2018 at a price of 300 each . long Term Capital Gain of MR X is
Long Term Capital Gain: 300-200=100*200=20,000
Question: STCG or short term capital gain ?
Ans: when an individual sold their Asset with in one year from date of purchase the gain which he earned is Short term capital gain .
For example :Mr X buy 50 Share of XYZ ltd at a price of Rs 100 per share on 1-jan 2017 and sold their share on 5-Oct 2017 at a price of 300 each . Short Term Capital Gain of MR X is
Short Term Capital Gain: 300-200=100*200=20,000
Question : How much tax you have to pay on capital gain?
Ans: (1) STCG in above example is 20,000
Short term Capital gain tax= 20,000*15/100=3000
Mr X has to pay tax = 3000 on short term capital gain.
(2)LTCG: Long term capital gain in above example is =20,000
long term capital gain tax = NIL
Notes : (1)All the information which i give above is applicable only when you buy and sell equity shares and equity Mutual fund .
(2) In 2005 EX finance minister Pchidmbaram abolish the long term capital gain on sold of equity share is NIL.
http://www.moneycontrol.com/news/business/personal-finance/five-mistakes-you-must-avoid-while-investing-to-save-income-tax-2481675.htmlhttp://www.moneycontrol.com/news/business/personal-finance/five-mistakes-you-must-avoid-while-investing-to-save-income-tax-2481675.html
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