Capital Gains

Budget 2024 | Capital gains taxation in India is pretty much a mess right now. There are dozens of different products, all taxed at different rates for different holding periods. In fact, the taxation is so complex that it's given birth to products like arbitrage funds, which seek to get around some of these taxes. So, in the first budget of Modi government 3.0, here's why it's time to simplify these taxes.

Investing in these bonds, also known as 54EC bonds, can help you save tax on long-term capital gains. We share more details here

NRIs who sell property situated in India have to pay capital gains tax in India

The increase in surcharge, often called the 'super rich tax', has been rolled back for all domestic and foreign investorsFor income from salary, profession or rent above ₹2 crore, the surcharge increase will continue.

Shares of overseas companies are classified as long term if they are held for more than 24 monthsTax on LTCG or STCG can be either paid by way of advance tax in four instalments or before filing tax returns along with interest by 31 July

You need to reinvest the gains in capital gains bonds within six months of the asset’s transfer.The maximum you can invest in these capital gains bonds is ₹50 lakh per financial year

The equity returns are best delivered over long term and a period of two years of low or even negative returns should not be a reason to change the asset classBoth gold and debt schemes are low risk investments as the targeted return over a longer period in both the asset classes is in proximity to inflation

If you have sold shares, mutual fund units, property or gold, you must disclose the gains in your income tax returns (ITR). Here's how to calculate your gains and disclose them