{"id":4717,"date":"2023-09-22T10:27:57","date_gmt":"2023-09-22T10:27:57","guid":{"rendered":"https:\/\/bdsadvisories.com\/?page_id=4717"},"modified":"2023-09-23T08:02:04","modified_gmt":"2023-09-23T08:02:04","slug":"capital-assets-capital-tax","status":"publish","type":"page","link":"https:\/\/bdsadvisories.com\/index.php\/capital-assets-capital-tax\/","title":{"rendered":"Capital Assets &amp; Capital Tax"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"4717\" class=\"elementor elementor-4717\">\n\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-044fd42 e-con-full e-flex e-con e-parent\" data-id=\"044fd42\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;full&quot;}\" data-core-v316-plus=\"true\">\n\t\t\t\t<div class=\"elementor-element elementor-element-d39d71c elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"d39d71c\" data-element_type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! 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elementor - v3.17.0 - 08-11-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<div class=\"row title-wrapper\"><div class=\"col-lg-12\"><h2>\u00a0<\/h2><h2 class=\"section-heading\" style=\"text-align: center;\">Capital Assets &amp; Capital Tax<\/h2><\/div><\/div><h4 class=\"breadcrumbs\" style=\"text-align: center;\">NRI Taxation\u00a0<span class=\"breadcrumbs-separator\">\/<\/span>\u00a0<span class=\"post post-page current-item\">Capital Assets &amp; Capital Tax<\/span><\/h4><p>\u00a0<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-7e43d2a e-con-full e-flex e-con e-parent\" data-id=\"7e43d2a\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;full&quot;}\" data-core-v316-plus=\"true\">\n\t\t\t\t<div class=\"elementor-element elementor-element-8311314 elementor-widget elementor-widget-heading\" data-id=\"8311314\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.17.0 - 08-11-2023 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h3 class=\"elementor-heading-title elementor-size-large\">Capital Assets & Capital Tax<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-029fa9b e-con-full e-flex e-con e-parent\" data-id=\"029fa9b\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;full&quot;}\" data-core-v316-plus=\"true\">\n\t\t\t\t<div class=\"elementor-element elementor-element-b15aa37 elementor-widget elementor-widget-text-editor\" data-id=\"b15aa37\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"color: #000000;\">A capital asset encompasses any form of asset or property owned by an individual, regardless of its association with their business or profession. This category includes various items such as land, real estate properties like residential and commercial buildings, shares, stocks, securities, bonds, mutual funds, vehicles, trademarks, patents, machinery, jewelry, historical artifacts, and artworks like paintings and sculptures.<\/span><\/p><p><br \/><span style=\"color: #000000;\">\u2022 Inventory used in business operations, consumable supplies, and raw materials <\/span><br \/><span style=\"color: #000000;\">\u2022 Personal items like furniture and clothing<\/span><br \/><span style=\"color: #000000;\">\u2022 Agricultural land located in rural areas <\/span><br \/><span style=\"color: #000000;\">\u2022 Specific types of bonds such as 6.5% gold bonds, national defense gold bonds, special bearer bonds, defense gold bonds, and special bearer bonds <\/span><br \/><span style=\"color: #000000;\">\u2022 Gold deposit bonds held under the Gold Deposit Scheme 1999.<\/span><br \/><br \/><span style=\"color: #000000;\">When you dispose of a capital asset, the profit or loss resulting from the transaction is referred to as a capital gain or capital loss, respectively. In India, these gains are subject to taxation under the category of &#8216;Capital Gain tax&#8217; in the year of the sale. The classification of the gain as either &#8216;Long Term&#8217; or &#8216;Short Term&#8217; depends on the duration for which the capital asset has been held by the taxpayer. Below are the key rules regarding this:<\/span><\/p><table width=\"582\"><tbody><tr><td><p><span style=\"color: #000000;\"><strong>Asset Type<\/strong><\/span><\/p><\/td><td><p><span style=\"color: #000000;\"><strong>Long Term Capital Asset<\/strong><\/span><\/p><\/td><td><p><span style=\"color: #000000;\"><strong>Short Term Capital Asset<\/strong><\/span><\/p><\/td><\/tr><tr><td width=\"312\"><p><span style=\"color: #000000;\">Immovable property (including land and buildings)<\/span><\/p><\/td><td width=\"270\"><p><span style=\"color: #000000;\">Held for more than 24 months<\/span><\/p><\/td><td width=\"270\"><p><span style=\"color: #000000;\">Held for upto 24 months<\/span><\/p><\/td><\/tr><tr><td width=\"312\"><p><span style=\"color: #000000;\">Shares &amp; Securities (including equity or preference shares of a company listed on a recognized stock exchange, debentures, bonds, Government securities, equity oriented mutual funds, zero coupon bonds)<\/span><\/p><\/td><td width=\"270\"><p><span style=\"color: #000000;\">Held for more than 12 months<\/span><\/p><\/td><td width=\"270\"><p><span style=\"color: #000000;\">Held for upto 12 months<\/span><\/p><\/td><\/tr><tr><td width=\"312\"><p><span style=\"color: #000000;\">Any other capital asset<\/span><\/p><\/td><td width=\"270\"><p><span style=\"color: #000000;\">Held for more than 36 months<\/span><\/p><\/td><td width=\"270\"><p><span style=\"color: #000000;\">Held for upto 36 month<\/span><\/p><\/td><\/tr><\/tbody><\/table><p>\u00a0<\/p><p><span style=\"color: #000000;\">Long-term capital gains (LTCG) are subject to a 20% tax rate, and the acquisition cost of the asset is adjusted based on its current value using the &#8216;Cost Inflation Index.&#8217; Additionally, the Income Tax Act offers various tax-exempt reinvestment options for LTCG, providing opportunities to reduce the tax liability.<\/span><\/p><p><span style=\"color: #000000;\">Short-term capital gains (STCG) are subject to taxation at either 15% or the applicable slab rates, depending on the type of asset being sold.<\/span><\/p><p><span style=\"color: #000000;\">To calculate capital gains, you should determine the Full Value of Consideration (FVC). From the FVC, you can deduct the following expenses:<\/span><\/p><ul><li><span style=\"color: #000000;\">Expenditure related to the transfer<\/span><\/li><li><span style=\"color: #000000;\">Cost of acquisition (indexed if it&#8217;s a long-term capital asset)<\/span><\/li><li><span style=\"color: #000000;\">Cost of improvement (indexed if it&#8217;s a long-term capital asset)<\/span><\/li><\/ul><p><span style=\"color: #000000;\">You can claim exemptions under various sections to reduce the capital gains tax liability from the resulting amount.<\/span><\/p><p><span style=\"color: #000000;\">Our specialized services focus on helping NRIs compute capital gains from property sales, provide guidance on lower tax certificates, and assist with tax filing<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>\u00a0 Capital Assets &amp; Capital Tax NRI Taxation\u00a0\/\u00a0Capital Assets &amp; Capital Tax \u00a0 Capital Assets &#038; Capital Tax A capital asset encompasses any form of asset or property owned by an individual, regardless of its [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_canvas","meta":{"footnotes":""},"rishi__cb_customizer_meta":"","_links":{"self":[{"href":"https:\/\/bdsadvisories.com\/index.php\/wp-json\/wp\/v2\/pages\/4717"}],"collection":[{"href":"https:\/\/bdsadvisories.com\/index.php\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/bdsadvisories.com\/index.php\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/bdsadvisories.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bdsadvisories.com\/index.php\/wp-json\/wp\/v2\/comments?post=4717"}],"version-history":[{"count":10,"href":"https:\/\/bdsadvisories.com\/index.php\/wp-json\/wp\/v2\/pages\/4717\/revisions"}],"predecessor-version":[{"id":4987,"href":"https:\/\/bdsadvisories.com\/index.php\/wp-json\/wp\/v2\/pages\/4717\/revisions\/4987"}],"wp:attachment":[{"href":"https:\/\/bdsadvisories.com\/index.php\/wp-json\/wp\/v2\/media?parent=4717"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}