Capital Gains

TDS on Property Sale @ 1% under Section 194IA

TDS on Property Sale @ 1% under Section 194IA

The Indian Finance Minister P. Chidambaram while announcing the Budget 2013-14 introduced TDS on Property @ 1% on all Immovable Property Transactions over Rs. 50 Lakhs under Section 194IA. Reason for Introduction of TDS on Property P. Chidambaram while introducing TDS on Property said that Transactions of Immovable Property are usually undervalued and under-reported. Almost half of the Transactions don’t even […]

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Computation of Capital Gains Tax on Sale of Shares & Mutual Funds

Computation of Capital Gains Tax on Sale of Shares & Mutual Funds

Capital Gains Tax on sale of shares/mutual funds is levied based on the nature of the Capital Gain. There are 2 types of capital gains i.e. Short Term and Long Term. Particulars Period of Holding in case of Shares & Mutual Funds Period of Holding in case of other Assets Short Term Capital Gains Less than 12 months Less than […]

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Capital Gains Tax on sale of Bonus Shares & Right Shares

Capital Gains Tax on sale of Bonus Shares & Right Shares

At the time of sale of shares, Capital Gains Tax is levied depending on the nature of the capital gains. If the Capital Gains are Long Term in Nature, such gains would be exempted from capital gains tax under section 10(38) and in case such gains are short term in nature, such gains would be taxable @ 15% under section […]

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Debt Mutual Funds vs Equity Mutual Funds

Debt Mutual Funds vs Equity Mutual Funds

A Mutual Fund is a professionally organised fund which collects money from the public and then invests this money in those instruments for which it has raised funds.  There are many types of Mutual Funds, but the 2 most popular funds are Debt Mutual Funds and Equity Mutual Funds. Debt Mutual Funds are also known as Debt Funds Recommended Read: What […]

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What are Debt Funds? Debt Fund vs Fixed Deposit: Which is better?

What are Debt Funds? Debt Fund vs Fixed Deposit: Which is better?

A new form of fixed income earning investment that has been gaining popularity is the Debt Fund. The preference of many investors has now slowly started shifting from Fixed Deposits to Debt Funds. Before making a comparison between Debt Funds and Fixed Deposits, let’s first understand the meaning of Debt Funds. What is a Debt Fund? A Debt Fund is […]

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Tax on Debt Funds/ Bonds/ Debentures: Computation with Examples

Tax on Debt Funds/ Bonds/ Debentures: Computation with Examples

With Debt Funds, Bonds & Debentures getting popular among the investors, and investors starting to shift from Fixed Deposits to Debt Funds, tax on debt funds/ bonds/ debentures is something that needs to be understood before making investments in a Debt Fund. Recommended Read: What is a Debt Fund? Debt Fund vs Fixed Deposits Tax Free Bonds: Should you be investing […]

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Capital Gains Account Scheme: Features & Tax Benefits

Capital Gains Account Scheme: Features & Tax Benefits

The profit that arises on the sale of any property is referred to as Capital Gains and is chargeable to tax.  (Refer: Computation of Tax on Capital Gains) Govt also provides for various schemes for saving tax on such capital gains under Section 54, 54B, 54D, 54F etc. (Refer: How to save Capital Gains Tax) However, as per the provisions […]

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Tax on Property Transaction below Circle Rate: Section 50C, Sec 56

Tax on Property Transaction below Circle Rate: Section 50C, Sec 56

This article highlights the income tax treatment on purchase/sale of a property below the Stamp Duty Value under Section 50C & Section 56(2)(vii). Before the explaining the treatment, lets first understand the meaning of Stamp Duty Value. Circle Rate Each State Govt has a pre-decided minimum valuation on which Stamp Duty is to be paid. This pre-decided minimum valuation is […]

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Capital Loss: Treatment for Income Tax purposes

Capital Loss: Treatment for Income Tax purposes

At the time of sale of any Asset, if a Short Term/ Long Term Capital Loss arises to a taxpayer; this loss is allowed to be set-off in the same year against other incomes. However, if this loss is not set-off in the same year, it is allowed to be carried forward to the next year. Recommended Read: Capital Gains […]

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Section 54, 54EC, 54F: Exemption from Long Term Capital Gains Tax

Section 54, 54EC, 54F: Exemption from Long Term Capital Gains Tax

At the time of sale of any Long Term Capital Asset, the Gains are usually very large and are taxed @ 20%. The Resultant Figure to be paid as Tax usually comes out to be a very large amount liable to be paid as Long Term Capital Gain Tax. Recommended Read: Computation of Long Term Capital Gain Tax However, the […]

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