Question 1

How is capital gains tax calculated?

Accepted Answer

Gain = sale value − cost of acquisition − transfer expenses and improvement. Whether it is short- or long-term depends on how long you held the asset, compared date to date, and on the asset. Long-term gains on most assets are taxed at 12.5%; listed equity at 12.5% above ₹1,25,000 a year and 20.0% short-term; other short-term gains at your slab rate.

Question 2

When does a holding become long-term?

Accepted Answer

Listed shares, equity funds and listed bonds after 12 months; land, buildings, gold, unlisted shares and most other assets after 24 months. Debt fund units bought on or after 1 April 2023 are always short-term. A holding of 12 months and a day is long-term; the calculator compares dates, not rounded months.

Question 3

Why does the purchase date matter as well as the holding period?

Accepted Answer

Budget 2024 changed the rates from 23 July 2024 (equity short-term from 15.0% to 20.0%, long-term from 10.0% to 12.5%) and removed indexation. For land or buildings bought before that date, a resident individual or HUF may still pay the lower of 12.5% without indexation or 20.0% with it.

Question 4

How is crypto taxed?

Accepted Answer

A flat 30.0% on the gain, however long it was held, with no deduction except the cost of acquisition. A loss cannot be set off against any other income, and 1% TDS applies on the sale value.

Question 5

Does this include surcharge and cess?

Accepted Answer

No. The figure is the tax at the capital-gains rate. Surcharge (capped at 15% on these gains) and 4% cess are added on the return, along with your other income.

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