- Short Term C G
- Long Term C G
CAPITAL LOSS
DIVIDEND INCOME
THE BONUS TIP TO SAVE TAX
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GOV. COLLECT TAXES FROM
1. Salary (TDS)
2. Business Income
3. Capital Gain
4. House Property
5. Other Sources
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Capital Gain ( Equity & Debt Investments )
Lets we have land which was bought at Rs. 1Lakh and after a few years later Sell at Rs. 10Lakh.
10 - 1 = 9Lakh is a Capital Gain.
For Builder: Business Income
For Me: Capital Gain
STCG ( Short Term Capital Gain )
{ Holding < 1Year }
LTCG ( Long Term Capital Gain )
{ Holding > 1Year }
LTCG tax on EQUITY, if we get profit 10 lakh then 1 lakh exempted and remaining 9 lakh we give 10% tax to the government.
Indexation ( CLI - cost of living index )
Let a land we have.
Buy: 10 lakh (40 years ago)
Now Sell: 1 crore
Indexed Cost: 60 lakh ( present value of previous 10 lakh )
Taxable Gain: 40 lakh
Benefit: Debt, Debt Mutual Funds, Debentures, Bonds, Real Estate but not in Equity.
Grandfathering Concept:
Buy: 100 (20-30 years ago)
Price Today: 5000
Price on 31 Jan 2018 = Deemed Cost
Price on 31 Jan 2018 = 4500
Capital Gain = 5000 - 4500 = 500
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CAPITAL LOSS
Loss in STCG:
SET-OFF concept
50,000 Profit
45,000 Loss
Tax Payable on 50,000 - 45,000 = 5,000/-
Carry Forward Concept
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TAX ON DIVIDEND INCOME
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TAX HARVESTING
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