Capital Gains Tax (Property, Stocks & F&O)
Comprehensive computation of Short-Term (STCG) and Long-Term Capital Gains (LTCG) on immovable property, stocks, mutual funds, and F&O derivatives. Maximize tax savings using Section 54, 54F, and 54EC exemption claims.
1. Statutory Framework (Section 45)
Under Section 45 of the Income Tax Act, 1961, any profits or gains arising from the transfer of a capital asset (land, building, equity shares, mutual funds, gold) effected in the previous year shall be chargeable to income tax under the head "Capital Gains".
Capital Gains on Immovable Property
Property held > 24 months is classified as LTCG. Stamp duty valuation u/s 50C applies if sale deed value is lower than government circle rate.
Capital Gains on Shares & Mutual Funds
Listed equity held > 12 months is LTCG (taxed u/s 112A). Short-term gains are taxed u/s 111A. F&O trading is classified as Business Income u/s 43(5).
2. Legitimate Tax Exemption Schemes
Section 54 (Residential House Purchase)
Exemption available when LTCG from sale of a residential house is reinvested in purchasing or constructing another residential house in India.
Section 54F (Sale of Land / Commercial Asset)
Exemption available when net consideration from sale of any capital asset (other than residential house) is invested in a residential property.
Section 54EC (Capital Gain Bonds)
Investment of LTCG up to ₹50 Lakhs in specified REC, NHAI, PFC, or IRFC bonds within 6 months of sale.
3. Mandatory Document Checklist
Required Documents for Capital Gain Calculation
- Sale Deed & Purchase Deed for Property
- Annual Capital Gain Statement from Stock Broker (Zerodha/Groww)
- Proof of Construction / Improvement Expenses
- Section 54EC Bond Investment Certificates
4. Step-by-Step CA Filing Timeline
Step 1: Cost Inflation Index (CII) & Gains Calculation
Calculating indexed cost of acquisition using official CBDT Cost Inflation Index table and evaluating Sec 50C circle rate adjustments.
Step 2: Section 54/54EC Exemption Claim & ITR Filing
Claiming statutory exemptions, setting off brought forward losses u/s 70-74, and filing ITR-2 / ITR-3.
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