Long term capital gain tax

An Income Tax Practioner/CA is the beat person to assist you in the matter.

In case of long-term capital gain, capital gain = final sale price - (transfer cost + indexed acquisition cost + indexed house improvement cost).

To calculate the long-term capital gains accurately, follow the steps mentioned below:

Step 1: Determine the Full value of consideration

Step 2: Determine the Net value of Consideration

Step 3: Calculate the Cost of Acquisition 

The formula for calculating the indexed cost of acquisition is:

Indexed cost of acquisition = Cost of acquisition x (CII of the year of transfer / CII of the year of acquisition)

Step 4: Deduct exemptions under section 54/54B/54D/54EC/54F

Step 5: Long-Term Capital Gains chargeable to tax:

The long-term capital gains chargeable to tax formula is:

LTCG chargeable to tax = Net sale consideration - Cost of Acquisition - Cost of Improvement - Exemptions under Section 54/54B/54D/54EC/54F.

Consult tax lawyer ..

To calculate Long-Term Capital Gains (LTCG) tax, follow these steps:

Determine the Full Value of Consideration Sale price: ₹10,50,000

Calculate Indexed Cost of Acquisition Since you acquired the property in 2017, the cost of acquisition is ₹9,40,000.

Indexation benefit applies if the sale occurred before July 23, 2024. Indexed cost = Cost of acquisition × (CII of sale year / CII of acquisition year).

 However, indexation benefits were removed for transfers made after July 23, 2024.

Compute LTCG LTCG = Sale price - Indexed cost of acquisition If indexation is not applicable, LTCG = ₹10,50,000 - ₹9,40,000 = ₹1,10,000.

 Apply LTCG Tax Rate LTCG tax rate is 12.5% for all capital assets. Tax payable = ₹1,10,000 × 12.5% = ₹13,750. Check for Exemptions You may claim exemptions under Sections 54, 54B, 54D, 54EC, or 54F if applicable