If you rush to make tax-saving investments in the months of February and March, it is appropriate that you also try to reduce tax liability on your capital gains through tax loss harvesting. After all, both serve the same purpose. Reduce your tax outgo. In this post, we look at the concept of tax loss harvesting, where you use (or intentionally book) capital losses to set … [Read more...] about How Tax loss Harvesting can help you save Capital Gains Tax?
long term capital gains tax
Budget 2018 proposed long-term capital gains tax on equity investments. The very next day, the insurance companies were out with advertising campaigns highlighting the tax advantage of ULIPs over mutual funds. Well, mutual funds and ULIPs compete for investor money. And it is not unfair on the part of insurance companies to highlight any demonstrable advantage that they may … [Read more...] about After tax on LTCG, are ULIPs better than Equity Mutual Funds?
Long-term capital gains tax on the sale of equity and equity funds has now been introduced. Earlier, if you sold the listed shares or equity oriented mutual funds after 1 year, the resulting capital gains were exempt from income tax. This is no more the case. How will Long-Term Capital Gains on Sale of Equity Mutual Funds/shares be taxed? Such long-term capital gains are … [Read more...] about Budget 2018: Long Term Capital Gains Tax on Equity Mutual Funds and Listed Shares Introduced
In this post, I will focus on certain aspects of capital gains taxation for non-resident Indians (NRIs). Even though the rate of capital gains tax is same for residents and non-residents, there are a few differences that affect taxation for NRIs. Tax exemption limit for NRIs is Rs 2.5 lacs irrespective of age. In case of Resident Indians, the tax exemption limit is Rs … [Read more...] about NRI Corner: Capital Gains Tax for NRIs
You recently sold a house for hefty profit of Rs 80 lacs. You had bought the property ten years back for Rs 20 lacs and sold it for Rs 1 crore. Even after adjusting for indexation and other transaction costs, the long term capital gains comes out to Rs 50 lacs. To find out the method for calculation of long term capital gains, read this post here. Long term capital gains on a … [Read more...] about How to save Tax on Gains from Sale of House?
In one of the earlier posts, I discussed taxation of short term capital gains for various asset classes. In this post, we focus on taxation of long term capital gains. As mentioned in the aforesaid post, if you hold a capital asset for more than 36 months, it gets classified as long term capital asset. Any gains/loss arising out of sale of such asset is treated as long term … [Read more...] about Capital Gains Tax Simplified: Part II – Long Term Capital Gains Tax