![]() Next, deduct the cost of acquisition (what you paid when you bought the asset) and the cost of improvement (any expenses incurred to improve the asset).This is the amount that the asset is sold for. The first step is to calculate the full value of consideration.How to Calculate LTCG Calculating LTCG can be a complex process as it involves several steps. Gold, real estate and land, flats, debt funds, various assets The tax rate for other assets, such as property or gold, is 20 percent with indexation. For instance, the LTCG on the sale of listed equity shares and equity-oriented mutual funds, where STT (Securities Transaction Tax) is paid, and the asset is held for more than a year, is taxed at ten percent if the gain exceeds Rs1 lakh. Various Assets, Holding Period and Tax RateThe tax rate for LTCG varies based on the type of asset and the period it is held. The tax applies only to the gains, not the total amount received from the asset's sale. However, for listed equities and mutual funds, the asset needs to be held for more than one year.For instance, for immovable property, the asset must be held for more than two years to be considered long-term.The definition of a 'long-term' asset varies based on the type of asset. What is Long Term Capital Gains Tax or LTCG Tax?LTCG tax is a tax that investors need to pay on the profit generated from the sale of a capital asset held for a specific period. Also Read: Income tax slabs in India 2023-24: Old vs new tax regime, deductions and more When these assets are sold, the profits are subject to LTCG tax. These assets are expected to generate value for the business over a long period. However, such an item is not meant to be sold during the regular operation of the business. When it comes to businesses, a capital asset is defined as an item with a useful life extending beyond one year. They can also be unique items like art pieces or collectables. What are Capital Assets?Capital assets include stocks in companies, homes, cars, investment properties, and bonds. Understanding LTCG is essential as it can significantly impact the returns on your investments, altering your entire financial plan. One such tax that investors need to be aware of is the Long-Term Capital Gains tax or LTCG. ![]() However, the tax implication of the investments we pick is often overlooked. Investing is a critical, indispensable part of financial planning.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |