LTCG Long Term Capital Gain Calculator
Capital Gains Tax Calculation Methods
The capital gains accrued through the sale of any real estate asset is deemed as capital gain on a property. This gain is calculated as the difference between the sale proceeds and the cost of acquisition, which includes the purchase price, expenses incurred at the time of purchase, and any improvements made to the property.
Exemptions and Practical Examples
Under the Income Tax Act, certain exemptions and deductions are available for long-term capital gains. These exemptions include:
*- Exemption for up to Rs. 2 lakhs for individuals and Rs. 5 lakhs for HUFs on the sale of residential property
- Exemption for capital gains invested in specified bonds or other assets
- Indexation benefit, which allows for adjusting the cost of acquisition for inflation
Conclusion
The LTCG Long Term Capital Gain Calculator is a valuable tool for investors and taxpayers to accurately calculate their capital gains tax liability. By understanding the different calculation methods and exemptions available, taxpayers can optimize their tax savings and make informed decisions about their investments.
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