FAQs on Capital Gains

Chapters / List

1. What incomes are charged to tax under the head “Capital Gains”?

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2. What is the meaning of capital asset?

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3. What is the meaning of the term ‘long-term capital asset’?

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4. What is long-term capital gain and short-term capital gain?

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5. Why capital gains are classified as short-term and long-term?

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6. How to compute long-term capital gain?

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7. How to compute short-term capital gain?

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8. Is the benefit of indexation available while computing capital gain arising on transfer of short-term capital asset?

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9. In respect of capital asset acquired before 1st April, 2001 is there any special method to compute cost of acquisition?

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10. If any undisclosed income [in the form of investment in capital asset] is declared under Income Declaration Scheme, 2016, then what should be the cost of acquisition of such capital asset?

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11. As per the Income-tax Law, gain arising on transfer of capital asset is charged to tax under the head “Capital gains”. What constitutes ‘transfer’ as per Income-tax Law?

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12. What are the provisions relating to computation of capital gain in case of transfer of asset by way of gift, will, etc.?

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13. I have sold a house which had been purchased by me 5 years ago. Am I required to pay any tax on the profit earned by me on account of such sale?

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14. Are any capital gains exempt under section 10?

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15. At what rates capital gains are charged to tax?

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16. Is there any benefit available in respect of re-investment of capital gain in any other capital asset?

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17. Are there any bonds in which I can invest my capital gains to claim tax relief?

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18. What is the meaning of stamp duty value and what is its relevance while computing capital gain in case of transfer of capital asset, being land or building or both?

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19. Whether interest received on amount deposited in capital gain account under capital gain account scheme is taxable?

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20. Whether profit earned from sale of land or building or both chargeable to capital gain tax?

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21. Which Form is to be filed for withdrawal from Capital Gain Account?

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22. I want to close my capital gain account. The capital gain amount is already disbursed and only interest is lying in account. The branch manager asked for Form G with AO's endorsement on it. How to get it? Please advise procedure?

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