How to calculate capital gains tax on property? In case of long-term capital gain, capital gain = final sale price - (transfer cost + indexed acquisition cost + indexed house improvement cost).
How do you calculate capital gain?
Your taxable capital gain is generally equal to the value that you receive when you sell or exchange a capital asset minus your "basis" in the asset. Your basis is generally what you paid for the asset. Sometimes this is an easy calculation – if you paid $10 for stock and sold it for $100, your capital gain is $90.
What is capital gain with example?
Example: Suppose a person purchased 100 shares of Rs 100 each at a total cost of Rs 10,000. (Case 1: Capital Gain) After some time, say one year, if he sells those shares for Rs 130 each with the total selling price of those 100 shares being Rs 13,000, it would result in a profit of Rs 3,000.
What are the three methods of calculating a capital gain?
Whereas in the case of long-term capital gain, the capital gain shall be the excess of the full value of consideration over the aggregate of the following three amounts: Expenses of transfer; Indexed cost of acquisition of the asset; Indexed cost of improvement.