Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Capital gains are profits earned from selling capital assets such as stocks, mutual funds, property, or gold at a price higher than acquisition cost.
When you sell an investment for more than you paid, the profit is a capital gain — and India taxes it differently from salary income.
Gains are classified as STCG or LTCG based on holding period and asset class. Indexation may apply to debt and real estate. Set-off and carry-forward rules allow offsetting against capital losses within prescribed limits.
You bought mutual fund units for ₹3 lakh and sold for ₹4.5 lakh after 2 years. Capital gain is ₹1.5 lakh, taxed per LTCG rules for equity-oriented funds.
Capital gains often have separate rate structures. Equity LTCG above exemption may be taxed at flat 12.5% without slab benefit in current rules — verify latest Finance Act provisions.
Yes. STCL offsets STCG first; LTCL offsets LTCG. Unabsorbed losses can carry forward up to 8 assessment years.
Yes. Switching is treated as redemption from one scheme and purchase of another, triggering capital gains on the sold portion.