Income From Capital Gains

Capital Asset includes rights in or in relation to an Indian company, including rights of management or control or any other right. The following are not considered capital assets: Any stocks or consumables or raw material held for the purpose of Business or Profession Personal goods such as clothes, furniture held for personal use. Agricultural land in India in a rural area

Any profit or gain that arises from the sale of a 'capital asset' is a capital gain. This gain or profit is charged to tax in the year in which the transfer of the capital asset takes place. No capital gains is applicable when an asset is inherited because there is no 'sale', only a transfer. However, if this asset is sold by the person who inherits it, capital gains tax will be applicable. The Income Tax Act has specifically exempted assets received as gifts by way of an inheritance or will.

A capital asset held for not more than 36 months or less is a short-term capital asset. An asset that is held for more than 36 months is a long-term capital asset. It is important to find out the specific holding period applicable to your asset because it impacts how the capital gains will be calculated. Some assets are considered short-term capital assets when these are held for 12 months or less. This rule is applicable if the date of transfer is after 10th July 2014, irrespective of what the date of purchase is. The assets are: Equity or preference shares in a company listed on a recognized stock exchange in India Securities (like debentures, bonds, Govt securities etc) listed on a recognized stock exchange in India Units of UTI, whether quoted or not Units of equity oriented mutual fund, whether quoted or not Zero coupon bonds, whether quoted or not. When the above listed assets are held for a period of more than 12 months, they are considered long-term capital asset However, Immovable Property (Land or Building or both) and unlisted shares held for more than 24 months is termed as a long-term capital asset.

Tax on long-term capital gain: Long-term capital gain is taxable at 20% + surcharge and education cess. Tax on short-term capital gain when securities transaction tax is not applicable: If securities transaction tax is not applicable, short-term capital gain is added to your income tax return and the taxpayer is taxed according to his income tax slab. Note: Tax on short-term capital gain if securities transaction tax is applicable: If securities transaction tax is applicable, short-term capital gain is taxable at the rate of 15% +surcharge and education cess.

Income from House Property is possible in these cases: Rental Income on a let out property Annual Value of a property which is a deemed to be let out for income tax purposes ( when you own more than one house property) Annual Value of the property which is self occupied, which is Nil Under section 24 of the Income Tax Act you are allowed to make certain deduction from the Net Annual Value of your House Property. Net Annual Value is Gross Annual Value less Municipal Taxes Paid. In case the property is let out, its rent received is your Gross Annual Value, whereas in case of a deemed to be let out property, a reasonable rent of a similar place is your Gross Annual Value. For a self occupied house property the Gross Annual Value is Nil.

Yes, return can be revised upto 31st December of the relevant Assessment Year. Filing of revised return is not part of the plan. Plan buyer is required to provide full and accurate details to avoid the need for any rectification in the originally filed return.

Audit & preparation of financial statements is not part of the plan.