Residential Indians between 60 to 80 years of age will be exempted from long-term capital gains tax in 2021 if they earn Rs. 3,00,000 per annum. For individuals of 60 years or younger, the exempted limit is Rs. 2,50,000 every year.

How is Ltcg calculated on property?

Long term capital gain is calculated as the difference between net sales consideration and indexed cost of property. Similar to the indexation benefit available on the purchase price, any house improvement expenditure is also allowed to be adjusted as per the Cost Inflation Index published by Reserve Bank of India.

How is Ltcg calculated on MF?

You have to pay the long-term capital gains tax on the gains that are above Rs 1 lakh in a financial year. You have the LTCG tax on Rs 60,000. (Rs 1,60,000 – Rs 1,00,000) at 10%. You must pay short-term capital gains tax at 15% on the short-term capital gains which is Rs 1,00,000 *15% = Rs 15,000.

How can I avoid Ltcg tax on my property?

Exemptions under Section 54 EC on purchase of specific bonds They could also do so by reinvesting the money in specific bonds. Section 54EC allows exemption of LTCG on sale of land and building, if the profit is reinvested in certain specified bonds, within six months from the date of sale of the house.

What is the Ltcg tax rate?

10%
The Long-term capital gains (LTCG) over Rs 1 lakh on listed equity shares per financial year is taxable at the rate of 10% without the benefit of indexation.

How are long term capital gains taxed in India?

Any long-term capital gains above Rs 1 lakh that arise from the transfer of equity-oriented mutual funds and shares after 01 April 2018 are taxed at 10%. The ClearTax LTCG Calculator considers this rule and calculates the long-term capital gains tax.

How do you calculate long term capital gains?

For calculation of long term capital gains, you can take benefit of Cost Inflation Index (CII). Hence, long term capital gains can be calculated by the formula: Long Term Capital Gain = Sale Consideration – (Indexed Cost of Acquisition + Indexed Cost of Improvement + Cost of Transfer)

Do you have to pay tax on LTCG After indexation?

The tax will be on the LTCG that you calculated after indexation, that is, on Rs.23,01,270 and not on the Rs. 40,00,000 gain made. Can I get an exemption on capital gains?

Can a short term loss be set off against a long term gain?

However, long-term capital losses can be set off against long-term gains only. Short-term capital losses can be set off against short-term as well as long-term capital gains. Quick Tip: Long-term capital losses can be carried forward to a maximum of 8 years and set off against long-term capital gains.