TAX ADVISORY

Capital Gains Tax Advisory

Strategic guidance on capital gains tax arising from property sales, share transactions, mutual funds, and other assets.

Overview

Capital gains tax is one of the most complex areas of Indian income tax law. The applicable rate, holding period, indexation benefit, and available exemptions vary significantly depending on the asset type. A wrong decision — selling too early, missing an exemption deadline, or failing to reinvest gains — can result in a substantial and avoidable tax liability. Our advisors analyse your specific transaction and guide you to the most tax-efficient path.

Who Should Avail This?

Property Sellers

Individuals selling a residential or commercial property and wanting to minimize LTCG.

Equity & MF Investors

Investors with LTCG or STCG from stocks or mutual funds exceeding ₹1 Lakh.

NRIs Selling Indian Assets

NRIs subject to TDS u/s 195 and special capital gains provisions.

Business Owners

Those selling business assets or goodwill liable to capital gains tax.

Eligibility Criteria

  • Any individual who has sold a capital asset (property, shares, gold, MF units, bonds) during the financial year.
  • LTCG on equity/MF exceeding ₹1 Lakh in a financial year is taxable at 10%.
  • STCG on equity/MF is taxable at 15% flat regardless of income slab.
  • LTCG on property held over 24 months — indexation benefit available at 20%.

How It Works

1

Transaction Review

We review the details of your asset sale: purchase date, cost, sale price, and any improvements.

2

Classification & Rate

We determine whether the gain is short-term or long-term, and the applicable tax rate by asset class.

3

Exemption Mapping

We identify available exemptions — Section 54 (property), 54EC (bonds), 54F (other assets) — and advise on reinvestment timelines.

4

Tax Optimization

We structure the reinvestment to legally eliminate or minimize the capital gains tax.

5

Return Filing

Capital gains are accurately reported in ITR-2 with supporting calculations and exemption claims.

Key Benefits / Why Choose Us

Legal Tax Elimination

Correctly using Section 54 exemptions can eliminate LTCG on property sales entirely.

Correct Asset Classification

Avoid costly errors in determining holding periods, which affects the tax rate significantly.

Avoid Carry-Forward Errors

Losses can be set off against gains — our team ensures all eligible set-offs are claimed.

NRI Compliance

Ensure correct TDS is deducted by the buyer and proper treaty benefits are claimed.

Frequently Asked Questions

Q.What is the holding period for Long-Term capital gain on property?

A. For immovable property, the holding period for LTCG is 24 months. If held more than 24 months, it's LTCG taxable at 20% with indexation benefit.

Q.Can I avoid capital gains tax on property sale?

A. Yes, under Section 54, if you reinvest the sale proceeds to purchase another residential property within 2 years (or construct within 3 years), you can claim full exemption from LTCG.

Q.Does LTCG on shares exceed ₹1 Lakh need to be reported?

A. Yes, LTCG over ₹1 Lakh from listed equity shares/equity MF is taxable at 10% and must be reported in your ITR, even if tax liability is nil due to exemption.

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