Short-term capital gains are taxed as ordinary income at rates up to 37 percent; long-term gains are taxed at lower rates, up to 20 percent. If capital gains have not been invested until the date of filing of return usually 31 July of the financial year in which the property is sold, the gains can be deposited in a PSU bank or other banks as per the Capital Gains Account Scheme, Watch out for two things 1.
Gains on Opportunity Fund investments held between 5 and 10 years are eligible for a partial exclusion. If you are into buying and selling land regularly or in the course of your business, in such a case, any gains from its sale are taxable under the head Business and Profession.
Comment Policy: We invite readers to respond with questions or comments. Losses from the sale of personal-use property, such as your home or car, aren't tax deductible. What's next? Robo-advisors use a method called tax-loss harvesting.
Comments may be held for moderation and are subject to approval. The taxpayer has to invest the amount of capital gains and not the entire sale proceeds. The net investment income tax.
Fortunately, the Income Tax Department agrees with these limitations. The cost price is adjusted for inflation and indexed cost of acquisition is taken.
Advisor Insight Donald P.