How to – Calculate your Short Term Capital Gain
Are you interested to calculate your Tax liabilities for your sale of property. First understand what is short term capital gain & how to calculate it.
Short Term Capital Gain : Investment in any asset class if held for short period is taxed as short term capital gains. Except Equity (Shares), short term capital gain from other class is include in your income and taxed at slab rate.
TABLE for Short Term Capital Gain
Asset Holding Period Tax Rate Equity Less than 1 years 15% Debts Less than 1 years Added to your Income Gold - Physical/e-gold Less than 3 years Added to your Income Gold - ETF / Mutual Fund Less than 1 years Added to your Income Real Estate Less than 1 years Added to your Income Bonds/ NCDs Less than 1 years Added to your Income
1. Equity / Equity Mutual Fund – If you are invest in equity mutual fund unit and sale before 1 year your Tax calculation as per below
Cost of Purchase Equity Mutual Fund Unit 1,00,000 as on 24 Nov 2012. Sale Equity Mutual Fund Unit - 1,26,000 as on 20 Mar 2013. Your Short Term Capital Gain 26,000 Tax applicable on 26,000 3,900 ( 26,000* 15% ) Educational Cess - 3,900 117 ( 3,900* 3% ) Total Tax Payable 4,017 (3,900 + 117)
2. Property Sale – I brought property for 25 lakh Jan 2013 & sold it dec 2013 for 32 lakh. What is Tax Status
If the Property has been held for less than 36 months from the date of acquisition, the resulting gains shall be Short Term Capital Gain.
The entire STCG shall be taxable as per applicable Tax rate.