SERVICE: ITR filing for capital gains income

Capital gains refer to the profits or gains that arise either from the sale or transfer of capital assets. In other words, on the sale or transfer of a capital asset, the difference between the sale price (proceeds) and the cost of acquisition (purchase price) is a capital gain. Having said that, capital gains are of two types namely long term capital gains and short term capital gains.

Capital losses refer to the financial losses that incur on the sale or transfer of a capital asset. In other words, capital loss is when the proceeds from the sale or transfer of a capital asset are lower than its cost of acquisition.

You can carry forward your losses by the way of filing the Income Tax Return. Therefore, make sure you file your ITR in time!

Short-term capital gains arises from the sale or transfer of assets whose holding period is up to 36 months. And with respect to, the taxation of short-term capital gains, these gains are added to the individual’s total income and taxed at the applicable slab rates for that financial year.

On the other hand, long-term capital gains result from the sale or transfer of assets whose holding period exceeds the time frames. The holding period varies depending on the type of asset. These long term capital assets are taxed @10% without the benefit of indexation in case of listed securities. Whereas, in case of unlisted securities and other assets, are taxed at a flat rate of 20%.