1. Capital Gains Calculator
The term capital gain directs to the growth in the value of a capital asset when it is sold simply, a capital gain is generated when an asset is sold for more than the actual price paid for it. Basically, any type of asset that you own is a capital asset whether that's a type of investment, acquisition (like a stock, bond, or real estate), or something purchased for confidential use. Capital gains occur when the profits are generated from selling an asset at a price higher than its purchase price. Capital assets are mutual funds, real estate, stocks, bonds, etc. The term capital gain refers to the higher value acknowledged at the time of sale of the asset. Likewise, a capital loss simply meant a reduction in the value of an asset as compared to its original value. The manual calculations of capital gains can be a bit lengthy. Regardless, with the availability of Myitronline’s online capital gains calculator, it has been now a cup of tea for investors to calculate this tax liability within a couple of seconds.
2. About short-term capital gains tax
Returns rendered from capital assets or stocks that are retained for a shorter period of time are known as short-term capital gains. Short-term capital gains tax is levied at the 15% plus surcharge rates and cess as pertinent. Short-term capital gains other than such that are covered under section 111A of the Income Tax act attract tax at normal tax as per the taxable income of the individual. Mentioned below are the periods for which the respective asset’s returns are considered short-term: Stocks: Sold after a holding in less than 1 year. Equity mutual funds: Sold after a holding in less than 1 year. Debt mutual funds: Sold after a holding period of fewer than 3 years. Gold ETF: Sold after a holding period of fewer than 3 years.
3. What is Indexation?
Indexation - Indexation is an efficient way of adjusting the price of investments and reducing tax liability. Indexation provides many benefits for Long-term capital gains. Long-term capital gains are computed in the same manner as short-term capital gains are calculated. Moreover, the purchase cost of the asset and cost of the improvement is substituted with the indexed cost of accession and indexed cost of the refinement in long-term capital gains.
4. What is Myitronline’s capital gains calculator?
Myitronline’s capital gains calculator is an online utility tool that enables investors to estimate the amount of their capital gains tax liability for the investment options that are below-mentioned: Listed stocks Gold ETFs Debt-oriented mutual funds Equity-oriented mutual funds The calculator comes with different input categories like the type of asset, selling price, asset sold to date, buying price, and asset bought to date. Once the user inputs all these values, the calculator will show, on the right-hand side, the total asset holding period, type of capital gain, capital gains/losses, effective tax rate, and tax amount.
5. What are the steps to use Myitronline’s capital gains calculator?
Myitronline capital gains calculator is a simple and easy-to-use utility software for your EMI calculation. Anyone can operate it and can get the result in a few seconds. We have mentioned important steps to be followed for using Myitronline’s capital gains calculator to acquire the correct tax liability details: Firstly, In the option ‘type of asset’ dropdown menu and choose the suitable asset type. For instance, stocks. In the buying price and date boxes, fill in the relevant purchase price of the asset and the date that the asset was bought. Put the total sale price of the asset. Select the date when you sold the asset. There will be no long-term capital gains tax applicable to the investment for assets that have been bought before 31 March 2018. But assets bought after 01 April 2018 will entice the long-term capital gains tax relying on when they were sold. Depending on the purchase date and sale date, the calculator will automatically calculate the holding period, which will be displayed on the right side section of the calculator. This will determine whether long-term or short-term capital gains tax will be applicable. Myitronline’s capital gains calculator will then show the type of capital gain that is applicable. The calculator will estimate the total capital gain or loss and, as per the effective tax rate, it will show the total tax liability that you must pay in the financial year.
6. Why should you use Myitronline’s capital gains calculator?
Myitronline’s capital gains calculator helps to calculate the short-term or long-term capital gains tax as appropriate on returns rendered from certain asset types. Below are the benefits of using Myitronline’s capital gains calculator. The calculator furnishes the result of a lengthy long-term capital gains tax calculation within a couple of seconds. It lets the investors have a glimpse at the actual net returns to be availed from an investment after removing taxes from the original cost. With the help of the data provided by this calculator, investors can plan the investment duration for stocks, equity mutual funds, debt funds, and gold ETFs to attain maximum tax efficiency. Since investors can use this calculator even before investing, they can plan their investments depending on tax for various holding periods.
Frequently Asked Questions
How Are Capital Gains Taxed?
There are two types of capital gains one is short-term capital gains and the second is long-term capital gains. A long-term capital asset is assessed as an asset that is held for more than one year, such as your car, investment, or house. And short-term capital gains are assessed when such assets are held for less than 36 months.
What are capital gains in simple terms?
A capital gain “in simple terms” refers to the assets that are held for a particular period and sold at a more price than the bought price. Capital gains are simply a growth in the value of the asset.
How long should I have to hold my property to detour the capital gains tax?
You can avoid the capital gains tax on a property only if your property is a foremost place of residency and you have spent a minimum of 2 years living there.
What is the various taxable income beneath Capital Gains?
Any earnings which are acquired by the sale of a capital asset during a financial year will be taxable. This includes both short-term gains and long-term gains. The nature of the tax depends on the duration for which the asset is held.
Do I need to pay tax on earnings from the sold house that I bought 4 years ago?
Yes. Any gains earned from its sale are taxable under capital gains.
How is the tax of capital gains computed on mutual funds in India?
Profit and earnings from the sale of mutual fund investments are considered capital gains. It depends on the investment period and how long an individual holds it. The capital gains on mutual funds in India are taxable both as short-term capital gains and long-term capital gains.