Author(s): Sandipta Padhee


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Address: Sandipta Padhee
Hidayatullah National Law University, Near Abhanpur, Uperwara Post, Raipur
*Corresponding Author

Published In:   Volume - 2,      Issue - 1,     Year - 2014

When we buy any kind of property for a lower price and then subsequently sell it at a higher price, we make a gain. The gain on sale of a capital asset is called capital gain. This gain is not a regular income like salary, or house rent. It is a one-time gain; in other words the capital gain is not recurring, i.e., not occur again and again periodically. Whenever there is a loss on sale of any capital asset it will be termed as loss under the head capital gain. 1 TYPES OF CAPITAL GAIN The profit on transfer of STCA is treated as Short Term Capital Gains (STCG) while that on LTCA is known as Long Term Capital Gains (LTCG). While calculating tax the STCG is included in Total Income and taxed as per normal rates while LTCG is taxable at a flat rate @ 20%. COMPUTATION OF CAPITAL GAINS The capital gain can be computed by subtracting the cost of capital asset from its transfer price, i.e., the sale price. EXEMPTION FROM CAPITAL GAINS Exemption means a reduction from the taxable amount of capital gain on which tax will not be levied and paid. The exemptions are given under section 54, these exemptions are of various types but here we will discuss only one of the exemptions relating to the house property. CAPITAL ASSETS : Capital Asset means property of any kind, whether fixed or circulating, movable or immovable, tangible or intangible, held by the assesses, whether or not connected with his business or profession, but does not include Capital.

Cite this article:
Sandipta Padhee. Provisions related to income from capital gains. Int. J. Rev. & Res. Social Sci. 2(1): Jan. – Mar. 2014; Page 10-11.

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