How to – Calculate your Short Term Capital Gain

April 25, 2013

Are you interested to calculate your Tax liabilities for your sale of property. First understand what is short term capital gain & how to calculate it.

Short Term Capital Gain : Investment in any asset class  if held for short period is taxed as short term capital gains. Except Equity (Shares), short term capital gain from other class is include in your income and taxed at slab rate.

TABLE for Short Term Capital Gain

AssetHolding PeriodTax Rate
EquityLess than 1 years15%
DebtsLess than 1 yearsAdded to your Income
Gold - Physical/e-goldLess than 3 yearsAdded to your Income
Gold - ETF / Mutual FundLess than 1 yearsAdded to your Income
Real EstateLess than 1 yearsAdded to your Income
Bonds/ NCDsLess than 1 yearsAdded to your Income

Example :

1. Equity / Equity Mutual Fund – If you are invest in equity mutual fund unit and sale before 1 year your Tax calculation as per below

Cost of Purchase Equity Mutual Fund Unit 1,00,000as on 24 Nov 2012.
Sale Equity Mutual Fund Unit -1,26,000as on 20 Mar 2013.
Your Short Term Capital Gain26,000
Tax applicable on 26,000 3,900 ( 26,000* 15% )
Educational Cess - 3,900117( 3,900* 3% )
Total Tax Payable 4,017 (3,900 + 117)

2. Property Sale – I brought property for 25 lakh   Jan 2013   &  sold it dec 2013 for 32 lakh. What is Tax Status 

If the Property has been held for less than 36 months from the date of acquisition, the resulting gains shall be Short Term Capital Gain.

The entire STCG shall be taxable as per applicable Tax rate.

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