LTCG tax from April 1, heres how you can manage your equity investment gains
Capital gains under the income tax laws, refers to any profit or gain that arises from the sale of a capital asset which has to be offered to tax in the year in which the assets get transferred and the capital gains arises.
Until Budget 2018, any investment made in equity and gains arriving from the mechanism were exempt of Long Term Capital Gains (LTCG) under section 10(38), however finance minister Arun Jaitley on February 1, 2018, surprised investors by bringing the long-gone LTCG back, where you will have to pay 10% on your sale of equity shares or units of equity oriented fund or of a business trust. Investors have love for equities either by direct investing in companies listed on stock exchanges or opting for mutual fund schemes, or others. However, many individuals are still confused on how to operate their equity holdings once LTCG comes into effect, and to make things easier for them ClearTax - one of the largest e-filing platforms, has launched LTCG Taxation Advisory Plan and LTCG Filing Services services for investors, where all their questions in regards to the latter will be handled.
A capital asset can either be short term or long term depending on its period of holding. Therefore, a Short-term capital asset (STCA) is one which has been held for a period of 36 months or less by a taxpayer while a Long Term Capital Asset (LTCA) is one which has been held by a taxpayer for a period of more than 36 months, barring few exceptions covered in the table below. However, some assets have a different period of holding.
Here’s a list of capital assets and their holding, provided by ClearTax.
LTCG Taxation Advisory Plan will help investors understand tax laws on long term capital gains. Investors and potential investors can seek expert advice and be assured of best course of action.
Additionally, the LTCG Filing Services is made for those investors who have earned long term capital gains. The plan offers assistance at each step of the tax ladder, along with expert advisory for tax planning.
Capital gains under the income tax laws, refers to any profit or gain that arises from the sale of a ‘capital asset’ which has to be offered to tax in the year in which the assets get transferred and the capital gains arises.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.