Capital Gain Calculator

Types of Capital Gains

India considers two types of capital gains. They are:

• 1. The Short Term Capital Gain
  • Short-term capital gains arise from selling an asset locked for less than 12, 24, or 36 months.
  • The period is based on the nature of the asset.
  • The tax rate for short-term capital gains is 15% for stocks.
  • For other investments, it is the same as the ordinary income tax rate.
• 2. The Long Term Capital Gain
  • Long-term capital gains arise from selling assets locked for more than 12, 24, or 36 months.
  • The gains are based on the nature of the assets locked.
  • 20% tax rate is applied for long-term capital gains.
  • However, if you apply inflation indexing on the asset cost, a 10% rate is used.

Introduction to Capital Gain Calculator

A capital gain tax calculator is a financial tool for computing capital gains to be paid on the sale of an asset. These gains are paid to the GOI income tax department. 

Here are the key factors to be considered while calculating capital gains through a calculator:

• Asset type being sold
• Asset’s purchase price
• The selling price of the asset
• The locking period of the asset
• Taxpayer income and filing status
• Tax deductions or credits applied

How to Calculate Capital Gain on Property?

To calculate capital gain on property, you should have a basic understanding of the following:

• 1. The full value of consideration
  • The consideration value refers to the amount an individual will receive on the property sale. The value can be in the form of cash or any other asset.
  • In exchange for an asset, individuals should ensure that its full value of consideration is sold at its fair market value.
  • If the full value of considerations is offered in installments over years, the asset’s market value in exchange should be provided.
• 2. Transfer Expenses
  • Direct or indirect costs incurred during the property transfer are transfer expenses.
  • These expenses are classified as brokerage expenses, stamp duty, registration fees, legal expenses, marketing and advertising costs, etc.
• 3. Cost of Acquisition
  • The cost of acquisition is the expense individuals pay to acquire the property.
• 4. Cost of Improvement
  • The cost of expenses incurred in alterations or additions to the property is treated as the cost of improvement.
• 5. Inflation Index Cost
  • The inflation index helps individuals lower their land or property tax liabilities and make provisions against inflation.
  • The Cost of Inflation Index (CII) helps gauge the indexed Costs of improvement and acquisition.

Perks of Munim’s Capital Gain Calculator

1. Intuitive interface that simplifies the complex calculations
2. The calculator can be used to compute both short-term and long-term capital gains.
3. Eliminates delays and errors, ensuring accurate results.
4. Access our calculator from anywhere and at any time.