• Taxinfo.in

Computation of Long Term Capital Gain/Loss

Long term capital gain means capital gain arising from transfer of long term capital asset. Indexation benefit is available for long term capital gains.

Long term capital gain is computed as under

Long Term Capital Gain/LossAmountFull value of consideration Less: Expenses incurred wholly and exclusively in connection with such transfer                                                                                                         Net ConsiderationLess: Indexed Cost of acquisition Less: Indexed Cost of improvement                                                                                              Long Term Capital Gains Less: Exemption under section 54, 54B, 54D, 54EC, 54F, 54G, 54GA, 54GBxxx xxx xxxxxx xxxxxx xxx                                              Taxable Long Term Capital Gain (Loss if negative)XXX

Securities Transaction Tax (STT) is not allowed as deduction of expenses while calculating capital gain whether short term or long term.

Indexed Cost of Acquisition = (Cost of Acquisition x CII of year of transfer) / CII of year of acquisition of asset or CII for year 1981 whichever is later.

Indexed Cost of Improvement = Cost of Improvement x CII of year of transfer) / CII of year in which improvement took place

Cost Inflation Index (CII) Table

Recent Posts

See All

©2020 by Taxinfo.in. Proudly created with Wix.com