What is Capital Gain Tax? It's an Income Tax liability on Capital gains of an assessee.
What is Capital gains? Any profits or gains arising from the transfer of a capital asset in the previous year.
What is Capital Asset? Any Asset held by the assessee, whether Fixed Asset or Circulating Asset Movable or Immovable asset Certain Items of personal effect - Jewellery whether or not connected with his business or profession. But does not include the following Items: - Any stock-in-trade, consumable stores or raw materials held for the purposes of business or profession; Personal effects, i.e., movable property like wearing apparel and furniture held for personal use by the assessee or any member of his family dependant on him; Agricultural land in India; Special Bearer Bonds, 1981 issued by the Central Government; Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 notified by the Central Government. For the purpose of determining the Capital Gain Tax the capital assets are classified as Short term capital asset Long term capital asset
When we need to pay the Capital Gain Tax? It is chargeable in the year of transfer.
What transactions are regarded as "Transfer"? Transfer Includes, the sale, exchange or relinquishment of the asset; or the extinguishments of any rights therein; or the compulsory acquisition thereof under any law; or conversion or treatment of any asset as, stock-in-trade of a business; or the maturity or redemption of a zero coupon bond; or any transaction involving the allowing of the possession of any immovable property any transaction which has the effect of transferring, or enabling the enjoyment of, any immovable property
What is short term capital asset? Short Capital Asset Means the following: - Type of Asset | Period of Holding |
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Shares held in a company Security listed in a Recognised Stock Exchange Units in Unit Trust of India Unit in a Mutual Fund specified under section 10(23D) Zero Coupon Bonds | Held by an assessee for not more than twelve months immediately preceding the date of its transfer. | Any other Asset | Held by an assessee for not more than thirty-six months immediately preceding the date of its transfer. | What is long term capital asset? Long-term capital asset means a capital asset, which is not a short-term capital asset.
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