I can put or invest the long term gains within 6 months. The amount I invest (upto the amount of gains I get) is allowed as deduction from my gains. I can’t lo But if my return date comes earlier, I better do the investment before that Max amount I can do is Rs.50 lakh. […]
Sell a long term asset and buy bonds Read More »
If I sell a house, and intend to get a new house, I get the benefit in the form of reduction in my taxable gains on the sum I put in the new house. This is called Section 54 exemption. I need to go the following route: If I buy a new house, it should
When I earn capital gains, I have the option of saving tax on it, if I have plans to invest what I gained in a house or some investment bonds. There are two ways to do: Sell a Long Term owned House and Get a House option Sell a long term asset and buy bonds
The Exemption benefits Read More »
So, the first benefit I understand of Long Term Asset is that I get a real time cost or inflation adjusted cost benefit, so that my indexed cost is higher over the simple cost and to that extent the capital gain I get reduces. The second benefit is the lower taxation rates which I will
The Long Term Benefits Read More »
Formula Sale Price Less Cost being Higher of: Cost I paid for it Fair Market Value (FMV) as on 31.1.18 (but where I use the FMV option, I can’t take the Cost to be higher than sale price. Therefore, where FMV exceeds Cost I paid for it, I restrict such FMV to my sale price
Variant for sale of equity shares/equity mutual funds bought prior to 1.2. 2018 Read More »
Why index. Just as Government announces DA (twice annually) to cover inflation, Government announces an Inflation Index annually to cover inflation in cost over time. So our cost of long term assets is always kept in reality to cover inflation. Cost Inflation index is announced every year. We find Indexed cost by formula Index Cost
The Formula We do the Formula Sales Less Indexed Cost There are a few variants on the formula we come to later. But first explaining the formula. Sales- Is the price we get. We can reduce any sale expenses from Sale. Like brokerage paid. Cost- Cost includes both cost to acquire and cost to improve.
The Long Term Capital Gains Formula Read More »
Capital Gains has its formats or varieties, in fact two of them called: Short Term, and Long Term Simply said, its based on assets I sell, which are Short Term Assets (call as Short Term Capital Asset) and Long Term Assets (call as Long Term Capital Asset). This long and short is just a period
Varieties of Capital Gains- The Short Term and The Long Term Read More »
Asset is any thing of value that I own, it could be an immovable property, an investment such as shares on mutual funds. But I don’t count personal effects as assets (like the very special tennis racquet I have, or my antique fur coat or my old car, or furniture). But still valuables are counted
