Capital Gain Calculations With Excel File
Capital gains are profits or gains that are realized when an individual or entity sells a capital asset for a higher price than what it was purchased for. In India, capital gains are taxed under the Income Tax Act, 1961. There are two types of capital gains in India: short-term capital gains (STCG) and long-term capital gains (LTCG). STCG are realized from the sale of a capital asset that has been held for less than 36 months, whereas LTCG is realized from the sale of a capital asset that has been held for 36 months or more. Short-term capital gains are taxed as per the normal tax slab of the individual. For example, if an individual falls in the highest tax bracket of 30%, then their short-term capital gains will also be taxed at 30%. Long-term capital gains exceeding Rs 1 lakh in a financial year are taxed at 20% with the benefit of indexation. Indexation is a process of adjusting the cost of purchase of an asset to account for inflation over the years. This helps to lower the t...

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