Multi-Purpose Capital Gain Calculator for Equity
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What is capital gain?
Capital gain refers to the profit earned by an investor on the sale of capital assets. These assets include stocks, bonds, mutual funds, real estate, gold, property, etc. Capital gain is computed by identifying the difference between selling price of an asset and its original price.
For,
Selling Price > Original Price = Capital Gain
Selling Price < Original Price = Capital Loss
Types of Capital Gains
India considers two types of capital gains. They are:
- 1. Short-term Capital Gain
• Short-term capital gains arise from the sale of an asset locked for a period of less than 12, 24, or 36 months.
• The time 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 same as ordinary income tax rate. - 2. Long-term Capital Gain
• Long-term capital gains arise from the sale of assets locked for more than 12, 24, or 36 months.
• The gains are based on the nature of the assets locked.
• For long-term capital gains, 20% tax rate is applied.
• However, if you apply inflation indexing on the asset cost 10% rate is applied.
What is Capital Gain Calculator?
A capital gain tax calculator refers to a financial tool that assists in 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 long term capital gain 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 the asset’s full value of consideration is sold at its fair market value.
• The asset’s market value in exchange should be provided if the full value of considerations is offered in installments across years. - 2. Transfer Expenses
• Transfer expenses are defined as any cost incurred directly or indirectly by the individual during property transfer.
• These expenses are classified as brokerage expenses, stamp duty, registration fees, legal expenses, marketing and advertisement 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 that caters to expenses incurred in alterations or additions to the property is treated as 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.
Let’s see the formula:
Indexed Cost = (acquisition cost x CII for the year of sale) / CII for the year of purchase
5 Easy steps to Use our Capital Gain Calculator
- 1. Asset Type
Enter the type of asset sold, like stocks, property, etc. - 2. Net selling price
Enter the total amount received from the sale of the asset. - 3. Asset Bought Date
Select the date when the asset was bought. - 4. Net Buying Price
Enter the total amount the asset was bought for. - 5. Asset Sold Date
Select the date on which the asset was sold.
Perks of Munim’s Capital Gain calculator
- Intuitive interface that simplify the complex calculations
- Munim’s long term capital gain calculator can be used for both short-term and long-term capital gains.
- Eliminates delays and errors ensuring accurate results
- Can be accessed from anywhere and at any time.
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Frequently Asked Questions (FAQ)
What is long term capital gain calculator?
Calculator that compute capital gains on the sale of long term investments like stocks, property, etc. or other assets locked for more that 12, 24 or 36 months is long term capital gain tax calculator.
