Capital Gains Tax is defined under income tax act as profit or gains arising from the transfer of capital assets effected during the previous year is chargeable to income-tax under the head ‘Capital Gains’.
So you have to pay income tax on any capital gains during previous year. But income tax will not be charged as per the income tax slab or rates. It will be charged as per capital gains tax laws. We are here giving the capital gains tax rates chart including short-term capital gains and long-term capital gains.
Capital Gains Tax Rates Chart (A.Y.2019-20)
|Particulars||Short-Term Capital Gains Tax Rates||Long-Term Capital Gains Tax|
|Sale/Transactions of equity shares/unit of an equity oriented fund/unit of business trust which attract STT||15%||10% 1|
|Sales Transactions other than Mentioned above|
|Individuals||Progressive Slab Rates||20% with indexation or 10% without indexation for listed securities/units/zero coupon bonds|
|Firms including LLP||30%|
|Overseas Financial Organisations specified in section 115AB||40% corporate||10%|
|30% (Non Corporate)|
|Local Authority||30%||20% with indexation or 10% without indexation for listed securities/unites/zero coupon bonds|
|Co-Operative Society||Progressive Slab Rates|
- Unlisted shares of company would be treated as short-term capital asset if it is held for a period of 24 months or less immediately proceeding the date of its transfer.
- Long term capital on sale of listed mutual funds (other than equity oriented funds) will be taxed at the flat rate of 20%.
- Exemption from tax on Long term capital gain on sale of residential property or any other asset is allowed on re-investment in only one residential house in INdia.
- The period of holding of immovable property (being land or building or both) is 24 months (on or after 1-4-2017).
- As per Section 10(38), the long term capital gain arising on sale of equity shares shall be exempt only if, the securities transaction tax has been paid a the time of acquisition of those shares.
The cost of acquisition of shares would be:
1) actual cost at which shares are bought and
2) lower of following
- Highest price of securities as on 31-1-2018 and,
- Full value of consideration
Download Capital Gain Tax Rates Chart AY 2018-19
|Capital Gain Tax Rates Chart in Excel Format||Download Here||Download Here|
|PDF Format||Download Here||Download Here|
Computation of Capital Gains
Ascertain the full value of consideration received after transfer of any capital asset.
- Less: Deduct expenses for transferring of that asset like legal expenses, brokerage etc.
- Less: Purchase Value/Cost of acquisition/Indexed Cost of acquisition in case of Long-term capital gains.
- Less: Cost of Improvement/Indexed cost of improvement in case of long-term capital asset.
Balance is Gross Capital Gain/Loss
- Less: exemptions u/s 54, 54B, 54D, 54EC, 54F, 54GA, 54GB, and 54H.
Balance is Net Capital Gains/Loss which is chargeable to Tax.
The following table will help you to calculate capital gains tax as per rates/
Short-Term Capital Gains Tax Rates
Short-term Capital Gains are included in the gross total income of the assessee after allowing permissible deductions under Chapter VI-A, the total income is subject to tax at the rates given under income tax slab.
However, on transfer of equity shares, mutual funds subjected to Securities Transaction Tax, shall be taxable at a flat rate of 15%. Also deduction under Chapter VI-A shall not be allowable.
Long-Term Capital Gains Tax Rates
Long-term capital Gains are subjects to flat rate of tax @ 20%. However, in respect of long-term capital gains arising from transfer of listed securities (other than units of mutual funds/UTI) or zero coupon bonds, tax shall be payable @ 20% of the capital gains computed after allowing indexation benefits or @10% of the capital gains computed without giving the benefits of indexation, whichever is less.
Notes on Capital Gains Tax Rates
- Long-term capital gains from equity shares or unites of any equity-oriented mutual funds, subjected to securities transaction tax, shall be full exempt. [sec. 10(38)]
- W.e.f A.Y.2015-16, long-term capital gains from unites of non-equity-oriented mutual fund, shall be taxable @ 20%. The concessional rate of 10% on long-term capital gains without indexation shall not be available.
- Deduction under Chapter VI-A will not be allowed for long-term capital gains.
- If there is a loss under any head (except-long-term capital loss) it can be set off against income from short-term capital gains, while computing the gross total income. [sec. 70(2) and 71 (2)]
- For A.Y.2019-20 onwards, if the amount of Long term Capital Gain (including LTCG on Unit of Mutual funds) in a year exceeds Rs. 1,00,000, the excess amount above Rs.1,00,000 is taxable at the rate of 10%