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How do you calculate Capital Gains in India for Income Tax purpose?
Wiki User
∙ 15y ago
There are two type of capital gain. The procedure are given below-
Procedure to calculate short-term Capital Gains.
The computation of capital gains depends upon the nature of capital asset transferred, i.e., short-term or long-term capital asset. Tax incidence is higher in case of short-term capital gain as compared to long-term capital gain. The procedure for computation of short-term capital gain from the assessment year 1993-94 is as follows:
Step 1- Find out the full value of consideration. The expression full value means the whole price without any deduction whatsoever and it cannot refer to the adequacy or inadequacy of the price bargained for, nor has it any reference to the market value of the capital asset, which is subject matter of the transfer. The consideration for the transfer of the capital asset is what the transferor receives in lieu of the asset he parts with, namely money or money's worth.
Step 2- Deduct the following:
1.
1. expenditure incurred wholly and exclusively in connection with such a transfer
2. cost of acquisition
3. cost of improvement
Step 3- from the resulting sum deduct the exemption provided by sections 54B, 54D, 54G and 54H
Step 4- the balance amount is short-term capital gain
Procedure to calculate long-term capital gain.
Step 1- Find out the full value of consideration.
Step 2- Deduct the following:
1.
1. expenditure incurred wholly and exclusively in connection with such a transfer
2. indexed cost of acquisition
3. indexed cost of improvement
Step 3- from the resulting sum deduct the exemption provided by sections 54, 54B, 54D, 54EA, 54EB, 54F and 54G
Step 4- the balance amount is long-term capital gain
In case long term capital gains is covered by section 115AB, 115AC or 115AD, it is taxable at the rate of 10%.
Deductions under section 80CCC to 80U and rebate under section 88 is not available in respect of long term capital gains.
Wiki User
∙ 15y ago
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What is the capital gains tax?
The capital gains tax rates are determined by the type of investment asset and the holding period of the asset. In additional to the federal capital gains tax rates, your capital gains will also be subject to state income taxes. Many states do not have separate capital gains tax rates. Instead, most states will tax your capital gains as ordinary income subject to the state income taxes rates.
Are capital gains taxable by New York City?
New York City taxable income is based on New York State taxable income, which taxes capital gains as ordinary income. Therefore, yes, NYC taxes capital gains.
Do people have to pay income tax on realized investments after they pay capital gains tax?
No. You will not pay income tax in addition to capital gains tax if I understand you correctly. However, capital gains tax for an individual is reported and paid on your 1040 income tax return. The only difference is that the rate for capital gains taxes is lower than the regular income tax levels.
What is the capital gain tax rate?
The capital gains tax rates are determined by the type of investment asset and the holding period of the asset. In additional to the federal capital gains tax rates, your capital gains will also be subject to state income taxes. Many states do not have separate capital gains tax rates. Instead, most states will tax your capital gains as ordinary income subject to the state income taxes rates.
When you sell property less than you gave do you get to take it off your income taxes?
Not from current Income. But it can setoff the Capital Gains and hence Capital gains tax.
When would you have to pay capital gains taxes on real estate at the end of the year if that is your only source of income would capital gains tax be considered your income tax?
Yes long term capital gains on the sale of real estate would be subject to your income tax return. Capital gain taxes would be a part of your income tax on your 1040 income tax return.
What is the California Capital Gains Rate?
California capital gains tax is not different from tax on other forms of income. The rate for income above approximately $48,000 is 9.3%
Are capital gains given favorable tax treatment?
Long term capital gains are taxed at a federal rate of 0% or 15% which is considerably less than the rates on ordinary income. State income tax treatment of capital gains varies by state.
How do income tax losses affect your tax return?
Gains and losses from the sale or exchange of capital assets receive separate treatment from "ordinary" gains and losses. Capital gains are taxed before income, at a significantly lower rate than ordinary gains.
How does one calculate what to pay in capital gains tax on real estate?
To find out exactly what is owed in capital gains tax, you should utilize the services of a certified tax preparer. Alternatively, software programs such as TurboTax can also be used for this purpose.
How much is capital gains taxes on land?
In the United States, the federal long term capital gains tax is 0% or 15%, depending on your tax bracket. The short term rate is the same as for ordinary income. There are also state income taxes which vary by state.
NJ long term capital gains tax?
Unlike the federal government, NJ does not have a special long term capital gains rate. All capital gains are taxed at the same rates as ordinary income.
