W HAT IS CAPITAL GAIN IN INCOME TAX ?

P ROFITS OR GAINS ARISING FROM TRANSFER OF A CAPITAL ASSET   ARE CALLED “C APITAL G AINS ” AND ARE CHARGED TO TAX UNDER THE HEAD “C APITAL G AINS ” H OW CAPITAL GAIN IS
CALCULATED S UBTRACT YOUR BASIS ( WHAT YOU PAID ) FROM THE REALIZED AMOUNT ( HOW MUCH YOU SOLD IT FOR ) TO DETERMINE THE DIFFERENCE .  W HO PAYS CAPITAL GAINS ?A N INVESTOR WILL OWE LONG - TERM CAPITAL GAINS TAX ON
THE PROFITS OF ANY INVESTMENT OWNED FOR AT LEAST ONE YEAR . I F THE INVESTOR OWNS THE INVESTMENT FOR ONE YEAR OR LESS , SHORT - TERM CAPITAL GAINS TAX APPLIES . T HE SHORT - TERM RATE IS DETERMINED BY THE TAXPAYER ' S
ORDINARY INCOME BRACKET . T YPES OF C APITAL A SSETS STCG ( S HORT - TERM CAPITAL ASSET ) A N ASSET HELD FOR A PERIOD OF 36 MONTHS OR LESS IS A SHORT - TERM CAPITAL ASSET W HEREAS , BELOW - LISTED
ASSETS IF HELD FOR A PERIOD OF MORE THAN 12 MONTHS , SHALL BE CONSIDERED AS LONG - TERM CAPITAL ASSET . #E QUITY OR PREFERENCE SHARES IN A COMPANY LISTED ON A RECOGNIZED STOCK EXCHANGE IN I NDIA
#S ECURITIES ( LIKE DEBENTURES , BONDS , GOVT SECURITIES ETC .) LISTED ON A RECOGNIZED STOCK EXCHANGE IN I NDIA #U NITS OF UTI, WHETHER QUOTED OR NOT #U NITS OF EQUITY ORIENTED MUTUAL FUND , WHETHER QUOTED OR NOT
#Z ERO COUPON BONDS , WHETHER QUOTED OR NOT LTCG ( L ONG - TERM CAPITAL ASSET ): A N ASSET HELD FOR MORE THAN 36 MONTHS IS A LONG - TERM CAPITAL ASSET . T HEY WILL BE CLASSIFIED AS A LONG - TERM CAPITAL ASSET IF
HELD FOR MORE THAN 36 MONTHS AS EARLIER . @ E QUITY OR PREFERENCE SHARES IN A COMPANY LISTED ON A RECOGNIZED STOCK EXCHANGE IN I NDIA @S ECURITIES ( LIKE DEBENTURES , BONDS , GOVT SECURITIES ETC .) LISTED ON A
RECOGNIZED STOCK EXCHANGE IN I NDIA @U NITS OF UTI, WHETHER QUOTED OR NOT @ U NITS OF EQUITY ORIENTED MUTUAL FUND , WHETHER QUOTED OR NOT @ Z ERO COUPON BONDS , WHETHER QUOTED OR NOT

Short-term capital gain = Full value consideration

Less: Expenses incurred exclusively for such transfer
Less: Cost of acquisition
Less: Cost of improvement

Long-term capital gain=Full value consideration

Less : Expenses incurred exclusively for such transfer
Less: Indexed cost of acquisition
Less: Indexed cost of improvement
Less: Expenses that can be deducted from full value for consideration*

What is meant by wealth tax Act? The Wealth Tax Act, 1957 was an Act of the Parliament of India that provides for the levying of wealth tax on an individual, Hindu Undivided Family or company . The
wealth tax was levied on the net wealth owned by a person on a valuation date, i.e., 31 March of every year. The Act applies to the whole of India.

What are the powers of wealth tax authorities?Wealth-Tax Authorities: Section 8A : Powers of Commissioner respecting specified areas, cases, persons, etc. Section 8AA : Concurrent
jurisdiction of Inspecting Assistant Commissioner and Wealth-tax Officer. Section 8B : Power to transfer cases. Section 9 : Control of wealth-tax authorities

What penal provisions are provided under the Wealth Tax Act, 1957? Apart from levy of penalty for various defaults, the law also provides for prosecution for defaults like willful attempt to evade tax,
not filing return of wealth, failure to produce accounts, records; and false statement in verification, etc

Who are the authorities under wealth tax Act?The income-tax authorities specified in section 116 of the Income-tax Act shall be the wealth-tax authorities for the purposes of this Act and every such
authority shall exercise the powers and perform the functions of a wealth-tax authority under this Act in respect of any individual, Hindu undivided family or company  

How is wealth calculated?Wealth measures the value of all the assets of worth owned by a person, community, company, or country. Wealth is determined by taking the total market value of all physical and
intangible assets owned, then subtracting all debts. Essentially, wealth is the accumulation of scarce resources.

What are the types of wealth?Wealth can be categorized into three principal categories: personal property, including homes or automobiles; monetary savings, such as the accumulation of past income; and the capital wealth
of income producing assets, including real estate, stocks, bonds, and businesses

As per the depending stay of the individual in India, Income Tax Law has classified the residential status into three categories.   Residential status of an individual will cover the financial year of an individual and
as well as his/her previous years of stay. There are the following categories which classified the residential status of an individual. 1 Resident (ROR) 2. Resident but Not Ordinarily Resident (RNOR) 3. Non
Resident (NR) As per section 6(6) of Income Tax Act, 1961 there are following two conditions when an individual will be treated as the “Resident and Ordinarily Resident” (ROR in India.   1 If He/ She stays in India for a
period of 730 days or more during the 7 years of preceding previous year.   2 If He/ She stays in India for at least 2 out of 10 previous financial years which is preceding the previous years.   3 If the individual doesn’t
satisfy either of the condition, then he is no eligible to qualify as Resident and Ordinarily Resident (ROR). (RNOR)  an Assesse will be treated as a Resident but Not Ordinarily Resident (RNOR) if they satisfy
one of the basic condition which is as follows: 1 If He/ She stays in India for a period of 730 days or more during the 7 preceding financial year or; 2 If He/ She was a resident of India for at least 2 out of 10 in the previous
financial year.

Non – Resident (NR)

An individual will be qualified for Non Resident (NR) if He/ She satisfies the following conditions which are as follows: 

1, In a financial year if an Individual stay in India for less than 181 days and 2 In a financial year If an Individual stay in India for not more than 60 days 3 If an Individual
stay in India which exceed 60 days in a financial year but doesn’t exceed the 365 days or more during the 4 previous financial years.