{"id":29586,"date":"2025-08-02T01:38:33","date_gmt":"2025-08-01T20:08:33","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=29586"},"modified":"2025-09-10T00:08:05","modified_gmt":"2025-09-09T18:38:05","slug":"capital-gains-taxation-key-concepts","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/capital-gains-taxation-key-concepts\/","title":{"rendered":"Capital Gains Taxation &#8211; Key Concepts"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d0dc13c31e9\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d0dc13c31e9\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/capital-gains-taxation-key-concepts\/#Capital_Gains_Taxation_%E2%80%93_Key_Concepts\" title=\"Capital Gains Taxation &#8211; Key Concepts\">Capital Gains Taxation &#8211; Key Concepts<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/capital-gains-taxation-key-concepts\/#Tax_Rates_for_Capital_Assets\" title=\"Tax Rates for Capital Assets\">Tax Rates for Capital Assets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/capital-gains-taxation-key-concepts\/#Tax_Rates_for_Mutual_Funds\" title=\"Tax Rates for Mutual Funds\">Tax Rates for Mutual Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/capital-gains-taxation-key-concepts\/#Important_issue_stemming_from_the_new_capital_gains_tax_regime_effective_July_23_2024\" title=\"Important issue stemming from the new capital gains tax regime effective July 23, 2024.\">Important issue stemming from the new capital gains tax regime effective July 23, 2024.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/capital-gains-taxation-key-concepts\/#Long-Term_Capital_Gains_LTCG_on_Immovable_Property\" title=\"Long-Term Capital Gains (LTCG) on Immovable Property :\u00a0\">Long-Term Capital Gains (LTCG) on Immovable Property :\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/capital-gains-taxation-key-concepts\/#Interest_Deduction_Limits\" title=\"Interest Deduction Limits\">Interest Deduction Limits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/capital-gains-taxation-key-concepts\/#Capital_gains_check_expense_eligibility_Eligible_Capital_Gains_Expenses_In_a_Nutshell\" title=\"Capital gains: check expense eligibility : Eligible Capital Gains Expenses (In a Nutshell)\">Capital gains: check expense eligibility : Eligible Capital Gains Expenses (In a Nutshell)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/capital-gains-taxation-key-concepts\/#Property_gains_tax_benefit_or_burden\" title=\"Property gains tax: benefit or burden\">Property gains tax: benefit or burden<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/capital-gains-taxation-key-concepts\/#Salaried_Income_Impact\" title=\"Salaried Income Impact\">Salaried Income Impact<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/capital-gains-taxation-key-concepts\/#The_Technical_Glitch_Error_in_Tax_Utility\" title=\"The Technical Glitch (Error in Tax Utility)\">The Technical Glitch (Error in Tax Utility)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/capital-gains-taxation-key-concepts\/#Surcharge_Applicability_as_per_New_Tax_Regime\" title=\"Surcharge Applicability as per New Tax Regime\">Surcharge Applicability as per New Tax Regime<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/capital-gains-taxation-key-concepts\/#Capital_Gains_on_Sale_of_Ancestral_Jewellery\" title=\"Capital Gains on Sale of Ancestral Jewellery\">Capital Gains on Sale of Ancestral Jewellery<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-29591\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/Tax-.jpg\" alt=\"\" width=\"1008\" height=\"894\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/Tax-.jpg 1008w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/Tax--300x266.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/Tax--768x681.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/Tax--800x710.jpg 800w\" sizes=\"(max-width: 1008px) 100vw, 1008px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Capital_Gains_Taxation_%E2%80%93_Key_Concepts\"><\/span><span style=\"color: #000080;\"><strong>Capital Gains Taxation &#8211; Key Concepts<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Applicability: Capital Gains Tax applies on the transfer of a capital asset.<\/li>\n<li>Types of Capital Assets: Long-Term Capital Asset (LTCA) &amp; Short-Term Capital Asset (STCA)<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>Holding Period to Determine LTCG or STCG<\/strong><\/span><\/p>\n<table>\n<thead>\n<tr>\n<td><strong>Category<\/strong><\/td>\n<td><strong>Type of Capital Asset<\/strong><\/td>\n<td><strong>Before 23\/07\/2024<\/strong><\/td>\n<td><strong>On\/After 23\/07\/2024<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>A<\/strong><\/td>\n<td>i) Listed securities, units of UTI, equity mutual funds, zero coupon bonds<\/td>\n<td>\u2264 1 year &#8211; STCA<br \/>\n&gt; 1 year &#8211; LTCA<\/td>\n<td>Same as before<\/td>\n<\/tr>\n<tr>\n<td><strong>B<\/strong><\/td>\n<td>i) Unlisted shares<br \/>\nii) Immovable property<\/td>\n<td>\u2264 2 years &#8211; STCA<br \/>\n&gt; 2 years &#8211; LTCA<\/td>\n<td>Same as before<\/td>\n<\/tr>\n<tr>\n<td><strong>C<\/strong><\/td>\n<td>Any other asset<\/td>\n<td>\u2264 3 years &#8211; STCA<br \/>\n&gt; 3 years &#8211; LTCA<\/td>\n<td>\u2264 2 years &#8211; STCA<br \/>\n&gt; 2 years &#8211; LTCA<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Update: For &#8220;Any other asset&#8221;, LTCG now starts after 2 years, not 3 years, effective 23\/07\/2024.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Tax_Rates_for_Capital_Assets\"><\/span><span style=\"color: #000080;\"><strong>Tax Rates for Capital Assets<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<thead>\n<tr>\n<td><strong>Type of Asset<\/strong><\/td>\n<td><strong>Type of Gain<\/strong><\/td>\n<td><strong>Tax Rate Before 23\/07\/24<\/strong><\/td>\n<td><strong>Tax Rate On\/After 23\/07\/24<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Listed Equity Shares \/ Equity Mutual Funds<\/strong><br \/>\n(STT paid)<\/td>\n<td>LTCG (Sec 112A)<\/td>\n<td>10% on gains &gt; INR 1 Lakh<\/td>\n<td>12.5% on gains &gt; INR 1.25 Lakh<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>STCG (Sec 111A)<\/td>\n<td>15%<\/td>\n<td>20%<\/td>\n<\/tr>\n<tr>\n<td><strong>Immovable Property<\/strong><\/td>\n<td>LTCG<\/td>\n<td>20% with indexation<\/td>\n<td>20% with indexation or 12.5% without indexation (whichever is beneficial for Individual\/HUF)<br \/>\nOthers: 12.5% without indexation<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>STCG<\/td>\n<td>Normal slab rate<\/td>\n<td>Normal slab rate<\/td>\n<\/tr>\n<tr>\n<td><strong>Others<\/strong><\/td>\n<td>LTCG<\/td>\n<td>20%<\/td>\n<td>12.5%<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>STCG<\/td>\n<td>Normal slab rate<\/td>\n<td>Normal slab rate<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Tax_Rates_for_Mutual_Funds\"><\/span><span style=\"color: #000080;\"><strong>Tax Rates for Mutual Funds<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 170px;\" width=\"916\">\n<thead>\n<tr>\n<td><strong>Type of Fund<\/strong><\/td>\n<td><strong>Type of Gain<\/strong><\/td>\n<td><strong>If Acquired On\/Before 01\/04\/2023<\/strong><\/td>\n<td><strong>If Acquired After 01\/04\/2023<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Debt Fund<\/strong><\/td>\n<td>LTCG<\/td>\n<td>20% with indexation<\/td>\n<td>Normal slab rate<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>STCG<\/td>\n<td>Normal slab rate<\/td>\n<td>Normal slab rate<\/td>\n<\/tr>\n<tr>\n<td><strong>Equity Fund<\/strong><\/td>\n<td>LTCG<\/td>\n<td>10% on gains &gt; INR1.25 lakh*<\/td>\n<td>Same<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>STCG<\/td>\n<td>15%<\/td>\n<td>15%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li>Equity fund = more than <strong>65%<\/strong> invested in equities.<\/li>\n<li>Debt mutual funds <strong>acquired after 1-Apr-2023<\/strong> no longer get indexation and are taxed at <strong>slab rate<\/strong>.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Important_issue_stemming_from_the_new_capital_gains_tax_regime_effective_July_23_2024\"><\/span><span style=\"color: #000080;\"><strong>Important issue stemming from the new capital gains tax regime effective July 23, 2024.<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Rebate under Section 87A : Not available under New Tax Regime for Special Tax Rate incomes. And it is Available under Old Tax Regime.<\/li>\n<li>Basic Exemption Slabs : Still applicable on Special Tax Rate incomes under both regimes.<\/li>\n<li>Buyback of Shares : Before 01\/10\/2024: Exempt under Section 10(34A). and On or after 01\/10\/2024: Taxable as IFOS under Section 2(22)(f). Purchase consideration will be treated as current year capital loss.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Long-Term_Capital_Gains_LTCG_on_Immovable_Property\"><\/span><span style=\"color: #000080;\"><strong>Long-Term Capital Gains (LTCG) on Immovable Property :\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>For property sold after 23\/07\/2024: LTCG tax to be paid at lower of 12.5% or 20% \u2014 applicable under both tax regimes.<\/li>\n<li>For property sold before 23\/07\/2024: LTCG tax to be paid at 20% with indexation \u2014 applicable under both regimes.<\/li>\n<li>LTCG income (for property sold after 23\/07\/2024) to be added to Gross Total Income (GTI) based on LTCG without indexation.<\/li>\n<li>Section 54 exemptions (for property sold after 23\/07\/2024) will be based on Amount calculated without indexation of LTCG \u2014 applies under both regimes.<\/li>\n<li>Cross-verify tax utility calculations, especially for LTCG and surcharge. &amp; Consider both LTCG options (indexed and non-indexed) to choose the most tax-efficient route.<\/li>\n<\/ul>\n<ul>\n<li>Increased exemption limit on equity LTCG from INR 1 Lakh to INR 1.25 Lakh. &amp; Introduction of 12.5% LTCG tax rate (without indexation) for certain capital assets.<\/li>\n<li>20% STCG on listed equity shares (previously 15%) \u2013 a significant hike. &amp;No indexation benefit on debt funds acquired after 01\/04\/2023.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Interest_Deduction_Limits\"><\/span><span style=\"color: #000080;\"><strong>Interest Deduction Limits<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Old Tax Regime: Self-occupied: INR 2 lakh\/year cap on interest deduction (if construction completed in 5 years; else INR 30,000) &amp; Let-out: No cap on interest, but only INR 2 lakh can be set off annually and Excess loss carried forward for 8 years (house property only)<\/li>\n<li>New Tax Regime: Deduction for home loan interest allowed only on let-out properties &amp; Interest can be capitalized to reduce capital gains (if not claimed earlier)<\/li>\n<li>we needed to Ensure valid invoices, bills, and supporting documentation &amp; ITD uses AI tools to flag suspicious\/fraudulent claims also Backdated\/fake invoices may lead to scrutiny, penalties, or rejection<\/li>\n<\/ul>\n<ul>\n<li>NRIs must be cautious \u2014 they cannot claim indexation after 23 July 2024. And If overcharged due to surcharge misapplication, consider filing a grievance with the CPC or escalating through a rectification request.<\/li>\n<li>From 23 July 2024, NRIs are not eligible for indexation benefit on property sales. However, they can still claim: Valid capital improvement expenses &amp; Brokerage, legal costs, home loan interest (if not previously deducted)<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Capital_gains_check_expense_eligibility_Eligible_Capital_Gains_Expenses_In_a_Nutshell\"><\/span><span style=\"color: #000080;\"><strong>Capital gains: check expense eligibility : <\/strong>Eligible Capital Gains Expenses (In a Nutshell)<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-29572\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/07\/C-Gain-.jpg\" alt=\"eligible and ineligible expenses while calculating Capital Gains\" width=\"1035\" height=\"904\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/07\/C-Gain-.jpg 1035w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/07\/C-Gain--300x262.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/07\/C-Gain--1024x894.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/07\/C-Gain--768x671.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/07\/C-Gain--800x699.jpg 800w\" sizes=\"(max-width: 1035px) 100vw, 1035px\" \/><\/h2>\n<table style=\"height: 667px;\" width=\"852\">\n<thead>\n<tr>\n<td>Expense Category<\/td>\n<td>Allowed<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Brokerage\/Commission<\/td>\n<td>\u2714\ufe0f<\/td>\n<\/tr>\n<tr>\n<td>Structural Renovation (e.g., rebuilding)<\/td>\n<td>\u2714\ufe0f<\/td>\n<\/tr>\n<tr>\n<td>Painting <em>(if part of renovation)<\/em><\/td>\n<td>\u2714\ufe0f*<\/td>\n<\/tr>\n<tr>\n<td>Routine repairs and maintenance<\/td>\n<td>\u2718<\/td>\n<\/tr>\n<tr>\n<td>Property tax \/ society charges<\/td>\n<td>\u2718<\/td>\n<\/tr>\n<tr>\n<td>Tenant eviction compensation<\/td>\n<td>\u2718<\/td>\n<\/tr>\n<tr>\n<td>Legal &amp; paperwork charges (at sale)<\/td>\n<td>\u2714\ufe0f<\/td>\n<\/tr>\n<tr>\n<td>Home loan interest <em>(if not claimed as deduction)<\/em><\/td>\n<td>\u2714\ufe0f**<\/td>\n<\/tr>\n<tr>\n<td>\u00a0Mortgage repayment<\/td>\n<td>\u2718<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>* Only permitted if part of a larger renovation project<br \/>\n** Allowed only if not previously claimed as a deduction under Section 24(b)<\/p>\n<p>What About Furniture: Furniture for personal use is a <em>&#8220;personal effect&#8221; <\/em>Not considered a capital asset; Hence, no capital gains tax applies on sale of such items &amp; Maintain original invoices as proof of ownership<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Property_gains_tax_benefit_or_burden\"><\/span><span style=\"color: #000080;\"><strong>Property gains tax: benefit or burden<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Situation : Mr. A sold property purchased before July 23, 2024<\/p>\n<ul>\n<li>Property Sale Price: INR 2.05 crore<\/li>\n<li>Indexed Cost (with indexation): INR 2.33 crore \u2192 Loss of INR 28 lakh<\/li>\n<li>Non-Indexed Cost (actual cost): INR 1.8 crore \u2192 Gain of INR 25 lakh<\/li>\n<li>Tax Options for LTCG (before July 23, 2024) : 20% with Indexation &amp; Results in loss, hence no LTCG tax.<\/li>\n<li>12.5% without Indexation : Gain: INR 25 lakh \u2192 Tax = INR 3.1 lakh<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Salaried_Income_Impact\"><\/span><span style=\"color: #000080;\"><strong>Salaried Income Impact<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Salary: INR 30 lakh\u00a0 Less: Standard Deduction INR 75,000 \u2192 INR 29.25 lakh and Income Tax on salary: INR 5.67 lakh, Surcharge @10%: INR 56,750, 4% Cess: INR 24,970, Total Tax Payable: INR 6.49 lakh<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"The_Technical_Glitch_Error_in_Tax_Utility\"><\/span><span style=\"color: #000080;\"><strong>The Technical Glitch (Error in Tax Utility)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Even if taxpayer chooses 20% with indexation (and shows loss),<br \/>\n\u2192 the system still includes the non-indexed gain (INR 25 lakh) in gross income to check surcharge applicability.<\/li>\n<li>This incorrectly increases gross income &gt; INR 50 lakh, triggering 10% surcharge, even though actual taxable income is lower.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Surcharge_Applicability_as_per_New_Tax_Regime\"><\/span><span style=\"color: #000080;\"><strong>Surcharge Applicability as per New Tax Regime<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 333px;\" width=\"838\">\n<thead>\n<tr>\n<td>Gross Income Slab<\/td>\n<td>Surcharge Rate<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>INR 50 lakh to INR 1 crore<\/td>\n<td>10%<\/td>\n<\/tr>\n<tr>\n<td>INR 1 crore to INR 2 crore<\/td>\n<td>15%<\/td>\n<\/tr>\n<tr>\n<td>Above INR 2 crore<\/td>\n<td>25%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><em>Capped at 15% for income from dividends, listed equity gains, real estate gains, FPI income, and AOPs.<\/em><\/p>\n<p>Important for NRIs: NRIs are not eligible for indexation benefit on sale of property after July 23, 2024 &amp; This makes their LTCG tax exposure significantly higher.<\/p>\n<p>This issue arises from a software mismatch, not a legal amendment. Ideally, surcharge should apply on taxable gains, not notional or non-indexed ones. Supreme Court has flagged this earlier, but a fix is yet to be implemented.<\/p>\n<h3 data-start=\"96\" data-end=\"146\"><span class=\"ez-toc-section\" id=\"Capital_Gains_on_Sale_of_Ancestral_Jewellery\"><\/span><span style=\"color: #000080;\">Capital Gains on Sale of Ancestral Jewellery<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol data-start=\"148\" data-end=\"1617\">\n<li data-start=\"148\" data-end=\"503\">\n<p data-start=\"151\" data-end=\"167\">Taxability : Jewellery, whether self-acquired or inherited, is a capital asset under section 2(14) of the Income-tax Act.\u00a0Sale of inherited jewellery by a legal heir attracts Capital Gains Tax.\u00a0Since it is inherited, the gain is always treated as Long-Term Capital Gain (LTCG) [section 49 read with section 2(42A)].<\/p>\n<\/li>\n<li data-start=\"505\" data-end=\"708\">\n<p data-start=\"508\" data-end=\"533\">Cost of Acquisition : The cost is taken as the cost to the previous owner (ancestor). and Indexation benefit is available from the year the ancestor first acquired the jewellery.<\/p>\n<\/li>\n<li data-start=\"710\" data-end=\"1104\">\n<p data-start=\"713\" data-end=\"757\">Clarification on \u201c500 grams exemption\u201d :\u00a0The CBDT circular (1994) provides a relaxation during income-tax search\/seizure operations \u2014 officers shall not seize up to:<\/p>\n<ul data-start=\"899\" data-end=\"998\">\n<li data-start=\"899\" data-end=\"930\">\n<p data-start=\"901\" data-end=\"930\">500 grams per married lady,<\/p>\n<\/li>\n<li data-start=\"936\" data-end=\"969\">\n<p data-start=\"938\" data-end=\"969\">250 grams per unmarried lady,<\/p>\n<\/li>\n<li data-start=\"975\" data-end=\"998\">\n<p data-start=\"977\" data-end=\"998\">100 grams per male.<\/p>\n<\/li>\n<\/ul>\n<ul data-start=\"761\" data-end=\"1104\">\n<li data-start=\"1002\" data-end=\"1104\">\n<p data-start=\"1004\" data-end=\"1104\">This is only for seizure relief and does not provide any exemption from capital gains tax.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li data-start=\"1106\" data-end=\"1364\">\n<p data-start=\"1109\" data-end=\"1135\">Exemptions Available :\u00a0 Section 54F: Invest net consideration in a residential house property (subject to\u00a0 conditions). &amp; Section 54EC: Invest capital gains in specified bonds (NHAI\/REC, etc.) within 6 months (max \u20b950 lakhs). capital gains apply on sale of ancestral jewellery.\u00a0No blanket exemption of 500 grams exists for taxation purposes.Full value of consideration minus indexed cost of acquisition = taxable LTCG.<\/p>\n<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Capital Gains Taxation &#8211; Key Concepts Applicability: Capital Gains Tax applies on the transfer of a capital asset. Types of Capital Assets: Long-Term Capital Asset (LTCA) &amp; Short-Term Capital Asset (STCA) Holding Period to Determine LTCG or STCG Category Type of Capital Asset Before 23\/07\/2024 On\/After 23\/07\/2024 A i) Listed securities, units of UTI, equity &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[10265],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29586"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=29586"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29586\/revisions"}],"predecessor-version":[{"id":29886,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29586\/revisions\/29886"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=29586"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=29586"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=29586"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}