Income Tax Calculation for FY2425: Have you received Rs 5 lakh capital gains from equity, debt funds, gold or property sale? Know how much tax you need to pay

Capital income tax calculation: Capital is the profit earned from the sale of capital assets. Assets can be equity (stocks and mutual funds), jewelry, buildings, land or virtual assets, such as cryptocurrencies. While the long-term capital gains (LTCG) for most assets are taxed at a rate of 12.5% ​​without indexing benefits, the rules for short-term capital gains (STCG) vary.

They are mainly taxed at the flat rate.

Investors can also get Rs 1,25,000 of LTCG tax exemption by selling listed shares or mutual funds for stocks.

On the other hand, the STCG of listed shares or mutual funds for stocks is 20%.

Learn more about capital gains taxes applicable to a variety of assets and the estimated taxes required to obtain Rs 5 lakh capital gains from stocks and debt funds, real estate and gold jewelry.

Short-term capital gains (STCG) tax

The STCG tax is levied on the income from assets held for less than 24 months. However, if the assets are equity, then the units of securities (such as bonds, government securities listed in recognized safe exchanges), zero-interest bonds and UTIs, STCG will be used to hold for less than 12 months.

Long-term capital gains (LTCG) tax

LTCG taxes are taxed on assets sold after holding for more than 24 months. Such assets can be land, buildings and property.

However, if such assets are equity stocks, securities, UTI’s stock units and equity-oriented mutual fund units, they are used for assets over 12 months.

Let’s look at the tax rates for different assets.

Listed stocks and stock-oriented mutual funds

LTCG earned 12.5% ​​higher at Rs 1.25 lakh.

STCG is applied at 20%.

Mutual funds for stocks obtained on or before April 1, 2023

LTCG will be applied at a rate of 10% in the growth range of Rs 1 lakh.

STCG is applied at 15%.

About Debt Mutual Fund (acquired on or before April 1, 2023)

STCG will be applied at the tax tablet rate.

On the other hand, the rate of LTCG is 20%, indexed.

About Debt Mutual Fund (acquired on or after April 1, 2023)

Both STCG and LTCG will be taxed at individual tablet tax rates.

Profits from selling land, buildings or both

For individuals and Indian undivided families (HUFs)

The STCG will be 20%.

The LTCG will be 12.5%, no index, 20%.

On gold

If gold is held for less than 36 months, the STCG will apply to the individual’s income tax tablet.

If gold is held for more than 36 months, the LTCG will be 20%, and the index is index.

Calculation of the story

We will calculate the estimated income tax you need to pay Rs 5 lakh capital gains from mutual funds, debt funds, property and gold for equity oriented.

LTCG’s tax on mutual fund investment income for stocks (acquired on or before April 1, 2023)

After the waiver of Rs 1 lakh, the remaining amount is Rs 40,000 and the remaining amount is 10%.

LTCG’s tax on mutual fund investment income for stocks (acquired on or before April 1, 2023)

After tax exemption of Rs 1,25,000 and tax on the remaining amount is 12.5%, Rs 46,875.

Income tax on debt mutual fund income (acquired on or after April 1, 2023)

Since the holding duration is less than 36 months, STCG will apply to these benefits. This tax will be applied at a flat rate. Let’s see how different it costs.

The gold income tax held for less than 3 years

It will be taxed at a flat rate. Income tax should be as follows:

LTCG Land Tax

We calculate at a rate of 12.5% ​​without the benefit of indexing.

At this rate, the estimated income tax would be Rs 62,500.

(Disclaimer: These rates are estimated. Actual taxes may vary.)