Capital Gains (both long terms as well as short term) happen to be an important criteria as well as an invaluable area of discussion whenever it comes to the aspect of the sale of any of your crucial asset. Capital Gains are treated as highly valuable and important from the point of IT return. As a matter of fact, you are liable to pay a certain amount of tax on these gains made on the sale of any of your vital asset. It definitely goes without saying that capital gain is invariably a vital area of computation as the discussion veers around long terms as well as short term gains. There are in fact so many classifications as well as considerations closely associated with these gains. If you have to reflect on these gains then you need to focus on the related taxation processes as well that pertain to Capital Gain. Here is an introspective probe.
STCG and LTCG
As it comes to the aspect of Capital Gain Taxation you need to take STCG as well as LTCG aspects in mind. STCG stands for short term capital gains. LTCG stands for long term capital gains.
Long Term Capital Gain
[image credits : ET]
Short Term Capital Gain
[image credits : ET]
If you really need to consider on the taxation part you should make it a point to give a careful contemplation to the aspects related to acquisition cost. You bet that acquisition cost is actually a pretty important deal. In relation to acquisition cost you need to particularly focus on the distribution of your assets. You need to take inheritance, devolution as well as succession related issues as well. Do not forget to reflect on ITR2 related aspects in this connection.
Transfer oriented cost
Transfer oriented costs are very important stuffs to consider as you try to work things out with the taxation on your capital gains. There is actually a series of stuffs to take care of. You would be specifically required to take care of stamp duties, brokerage related expenses, legal costs, advertisement costs etc.
Consideration of full value
Consideration of full value us treated as one of the most invaluable proposition as it comes to the taxation on your capital gains and the prospects of the sale of an asset or the transfer of an asset. Consideration of the full value of a particular asset is actually decided on the basis of the market value.
Losses from Capital Gains
Losses under this are categorized as short term and long-term capital gains. Short-term capital loss can be offset against any capital gain — long term or short term. Long-term capital loss can be offset only against a long-term capital gain. Any capital loss after the offset can be carried forward up to eight Financial Years. A short-term loss which is carried forward can be set off against any capital gains. A long-term capital loss which is carried forward can be offset against only long-term capital gains. Both long-term and short-term capital losses can’t be offset against income from any other source. [Source : India Express]
– Generally it is ITR2. In relation to the taxation on your capital gains you would be required to take care of ITR2 forms if you are not a business person.
– ITR4 if you are business person then capital gains has to be filed under it.
– If you are a salaried person and has some business income then ITR-4S should cover.
A brief overview about Capital Gain Taxation from incometaxindia goverment portal should help you to explore more on this topic