{"id":1578,"date":"2023-08-01T15:38:39","date_gmt":"2023-08-01T10:08:39","guid":{"rendered":"https:\/\/savart.com\/blog\/?p=1578"},"modified":"2023-08-18T13:49:48","modified_gmt":"2023-08-18T08:19:48","slug":"how-to-calculate-long-term-capital-gain","status":"publish","type":"post","link":"https:\/\/savart.com\/blog\/how-to-calculate-long-term-capital-gain\/","title":{"rendered":"How to calculate long-term capital gain?"},"content":{"rendered":"\n

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One of the five heads of income, at the time of calculating the taxable income of a taxpayer, is the income from capital gains. Profits made at the time of selling any capital assets, such as property, shares, bonds, gold and any other tangible assets are known as capital gains and any such income is to be included under this head. Whether you have made gains or incurred losses, it is mandatory to disclose capital gains at the time of filing income tax returns for the year in which it is made.<\/p>\n\n\n\n

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A capital gain is a difference in the price of sale value and purchase value of the asset, but, the calculation of tax liability is different for each capital asset. Further, capital gains are classified as either short-term capital gains or long-term capital gains, depending upon the holding period of the asset.
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Calculation of long-term capital gains of various assets<\/strong><\/h2>\n\n\n\n

Long-term capital gains in case of sale of Property<\/strong><\/h3>\n\n\n\n

Profits arising from the sale of any property such as a land, building, house, apartment after a period of two years are known as long-term capital gains. The applicable tax rate on such gains is 20% with indexation benefit.<\/p>\n\n\n\n

Long-term capital gains are calculated as under<\/p>\n\n\n\n

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 <\/td>Sale Price<\/td><\/tr>
(-)<\/td>Indexed cost of acquisition<\/td><\/tr>
(-)<\/td>Indexed cost of improvement<\/td><\/tr>
(-)<\/td>Expenses incurred for such sale<\/td><\/tr>
  =<\/td>Long-term capital gains<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Where,<\/p>\n\n\n\n