Budget In A Minute: What is Capital Gain Tax? Understand from Anil Singhvi
Every year the finance minister of the country present the Union Budget. While hearing the budget on TV, you must have heard about few words like inflation, fiscal deficit, capital expenditure, revenue receipts, surplus budget etc.
Every year the finance minister of the country present the Union Budget (#BUDGET2020ZEE). While hearing the budget on TV, you must have heard about few words like inflation, fiscal deficit, capital expenditure, revenue receipts, surplus budget (#BUDGET2020ZEE) etc. For a common man, its difficult to understand the complex words, but Zee Business Managing Editor Anil Singhvi has made it simple! Today he has explained the term Capital Gain Tax in easy words.
If you are earning individual falling into the super-rich category, then government is also going to take a lot of money from you in the form of income tax outgo. Those who have higher income, they do invest in equity and mutual fund. When government charge from them for doing these kind of investment, that's call Capital Gain Tax.
There are two types of Capital Gain Tax
Let’s understand what’s short term capital gain tax is
Under short term capital gain tax, Only 15 % tax will be charged If you have purchased a share, or invested in equity mutual fund then get profit by selling them within a year.
Let’s understand what’s long term capital gain tax is
Under long term capital gain tax, investor has to give 10% tax but here are some exceptions. Earlier, If you weren't selling shares within a year, no tax was applicable but now the scenario has changed, from previous year, if you have sold your shares and has gained profit of 1 lakh, then there will be no tax, In case if you gain more than 1 lakh then you have to give 10 % tax on it.
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