EaseValueCapital gains arise when you transfer a capital asset — property, shares, mutual funds, gold, and more — and are taxed under Chapter IV-E (sections 67 to 90) of the Income-tax Act, 2025. The gain is broadly the sale consideration minus the cost of acquisition, cost of improvement and transfer expenses. How much tax you pay depends on whether the gain is long-term or short-term, and large gains can often be legally reduced by reinvesting under the exemption sections.
- Section 67 — charge: profit on transfer of a capital asset is taxable as capital gains.
- Section 72 — how the gain is computed.
- Section 82 — exemption on sale of a residential house if you reinvest in another house (successor to the old Section 54).
- Section 85 — exemption on land/building gains invested in specified bonds (successor to 54EC).
- Section 86 — exemption where a long-term asset is sold and the proceeds are invested in a residential house (successor to 54F).
Reviewer note: confirm the exact long-term holding periods and the current LTCG rate (12.5% for most assets on transfers on/after 23 July 2024) against Chapter XIII before publishing.