What is the treatment of capital gains?
Though only the net amount of capital gain is to be shown in the form, the calculation thereof and the details such as the description of the transferred asset, its cost of acquisition, the date of acquisition, date of transfer, value of consideration, adjustment of brought forward losses if any, etc., should be indicated in a separate annexure.
Though only the net amount of capital gain is to be shown in the form, the calculation thereof and the details such as the description of the transferred asset, its cost of acquisition, the date of acquisition, date of transfer, value of consideration, adjustment of brought forward losses if any, etc., should be indicated in a separate annexure. Also, short-term and long-term gains have to be seperately classified. A short-term asset is one which is held for 36 months or less immediately preceeding the date of transfer. Assets held for more than 3 years are consequently long-term. However, equity shares, units of UTI/MFs and listed scrips, bonds, debentures etc. are considered as long-term assets if held for more than 12 months. For computation of long-term capital gains, the assessee has two options.The first one is to calculate the difference between the cost of acquisation and the sale price and tax the same at a flat rate of 10%.The other option requires the assessee to pay tax @20
