Short Article
24-08-2024 | 17:23 PM
Capital Gains Tax
The Union Budget 2024-25 has raised taxation on income from capital gains.
Key Terms
- Capital assets: Investments in farms, bonds, shares, businesses, art, land, home, vehicle, trademark, machinery and Jewellery etc.
- Capital Gains Tax: It is a tax imposed on the sale of an asset. It is calculated based on the difference between sale price and purchasing price of the asset.
- Capital gain can be classified as short term and long term based on holding duration.
- Holding periods: for listed securities-1 year, for all other assets-2 years
- The rate on short-term capital gains has been hiked to 20% from 15%.
- It is a direct tax that is paid due to the income that is gained from the sale of assets or investments.
