POSTED BY June 12, 2008 COMMENTS (19)ON
Short Term Capital Gain :
If you sell it before 1 yr , the profit is called
and taxed at 15% (revised in 2008-09 budget) ,So if you make profit of 10,000 on shares or Equity mutual funds , you pay 1,500 as tax.
Long term Capital Gain : No tax
– Dividend income from any kind of mutual funds are not taxable.
Profit from Sale of House or Land
Long term Capital Gain : If you sell it after 3 years , its Long term Capital gain. and its taxed at 20% on profit.
Your profit = Sale Price – (Cost price after adjusting indexation ,
as per the cost inflation index)
Long term capital gain tax can be saved by investing the capital gains in some other residential property or in bonds of the Nabard , National Highway Authority of India, Rural Electrification Corporation of India or SIDBI redeemable after a period of three years.
Long term capital loss can also be set off against any Long Term Capital Gain in next 8yrs.
Short term Capital Gain : If you sell it before 3 yrs, its considered as STCG and added to your income and taxed accordingly.
Short term capital gains can set off against any LTCG or STCG within 8 yrs.
– Capital Gains from Agricultural Lands are not taxable.
– A person holding more than one residential property would be liable to Wealth Tax on the market value of the second property.
Profit from Jewellery
Short term Capital Gain : 20% tax on the profit if sold before 3 yrs (1 yr in case of GOLD ETF ) .
Long term Capital gain : 30% tax on profit if sold after 3 yrs ( 1 yr in case of GOLD ETF )
Don’t know what is GOLD ETF ? Read this article , CLICK HERE
Profit from Fixed Deopsits , PPF , NSC
Fixed Deposit : Interest Earned added to the income and taxed accordingly.
PPF : Interest earned not taxable
Interest earned taxable
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