Capital Gain Income

Overview

Each profit or gain that occurs from the sale of a ‘capital asset’ may be a capital gain. This gain or profit appears under the section ‘income’, and hence you’ll get to pay tax for that amount in the year during which the transfer of the capital asset takes place. This is usually called capital gains tax, which may be short-term or long-term. Capital gains don’t use to an obtained property as there’s no sale, only a transfer of ownership. The income tax Act has specifically spared assets acquired as gifts by way of an inheritance or will. However, if the person who acquired the asset decides to sell it, capital gains tax will be applicable.

TYPES OF ITR FORM

ITR-1: For Individuals being a Resident (other than Not Ordinarily Resident) having Total Income up to Rs.50 lakhs, having Income from Salaries, One House Property, Other Sources (Interest, etc.), and Agricultural Income up to Rs.5 thousand(Not for an individual who is either Director in a company or has invested in Unlisted Equity Shares).

ITR-2: For Individuals and HUFs do not have income from profits and gains of business or profession.

ITR-3: For individuals and HUFs having income from profits and gains of business or profession

ITR-4: For Individuals, HUFs, and Firms (other than LLP) being a Resident having Total Income upto Rs.50 lakhs and having income from Business and Profession which is computed under sections 44AD, 44ADA or 44AE

ITR-5: For persons other than Individual, HUF, Company (Partnership Firm, Aop / Boi)

ITR-6: For Companies other than companies claiming exemption under section 11

ITR-7: This form is relevant for all people who are required to file tax returns under the Section 139(4A), Section 139(4B), Section 139(4C), Section 139(4D), Section 139 (4E), or 139 (4F) that mainly includes Trust, University, etc.

Due Dates For Filing Income Tax Returns :

Category of Assessee	Due Date
Individual	31st July
Body of Persons (BOP)	31st July
Hindu Undivided Family ( HUF)	31st July
Association of Person (AOP)	31st July
Business (Audit Cases)	30th September

Our Process

Step 1

Discussion and collection of basic information

Step 2

Choosing applicable ITR Form

Step 3

Collection of Documents

Step 4

Computation of Tax Liability

Step 5

Form Filling & Submission

Step 6

Sharing Filled Documents

Choose Your Package

All Inclusive Pricing – No Hidden Fee

Basic
- ₹ 2000
- - Income From Salary upto 50 Lakh
  - Rent Income
  - Income From Other Sources
  - Tax Payment Assistance
  - Capital Gain on Sale of Property, Shares, Mutual Fund
  - Profit & Loss From Future & Options or Intra Day
  - Dividend Income
- Purchase Now

Premium
- ₹ 2500
- - Income From Salary More Than 50 Lakh
  - Rent Income
  - Income From Other Sources
  - Tax Payment Assistance
  - Capital Gain on Sale of Property, Shares, Mutual Fund
  - Profit & Loss From Future & Options or Intra Day
  - Dividend Income
  - Full Year Support for any assistance
- Purchase Now

Ultimate
- ₹ 3000
- - Income From Salary More Than 50 Lakh
  - More than one House Property
  - Rent Income
  - Income From Other Sources
  - Tax Payment Assistance
  - Capital Gain on Sale of Property, Shares, Mutual Fund
  - Profit & Loss From Future & Options or Intra Day
  - Dividend Income
  - Full Year Support for any assistance
- Purchase Now

Benefits

Taxable Income

If you have taxable income in India, you must record your ITR in India. This is appropriate for a person if his/her taxable income surpasses INR 2.50 Lakh. In case you are a Company, LLP, or Partnership Firm, you must file ITR irrespective of your profit or loss.

Financial Power

A good track record of consistent ITR Filing shows your financial strength and is significant in your regularity. This serves you to receive instantaneous bank credits and also a visa. Henceforth, it is advisable to file ITR on a routine basis.

Trustworthiness

Filing an ITR improves your reliability and your credit availing capacity from the bank aspect. Even if you are not accountable for ITR filing for any reason, it is a good practice to file the same. Your ITR helps as proof of your Income. No other document does this job.

Tax Refunds

For any reason, if your TDS has been deducted and the same is higher than your exact tax payable, such a refund request can only be done by filing an accurate IT return in time. You won’t notice your returns if you don’t file your ITR.

Move Forward Losses

If you have acquired any losses in your business on account of expenses or reduction, you must file your return to move ahead of those. The advantage of this can be availed once you have taxable income. Such losses, then, can be set off on taxable profits.

Avoiding Tax Notices

There are many measures defined under the Act, in which you may be assisted legal notification if you have not filed your ITR. Filing your ITR precisely and in time can assure you that you don’t have to meet any of these.

Documents Required

All Form 16 Part A & B from your Companies

Form 26AS Tax Credit Statement

PAN & Aadhar Card

Income Tax Login Credentials

Bank statement if the interest received is above Rs. 10,000/-

Salary Slip of any month during the Financial Year

Bank Account Number, IFSC Code

Any Other Income or Investment Proofs that hasn't been declared or mentioned in Form 16.

Details of Capital gains such as Statement of Equity, Stocks, or Mutual Funds along with Broker’s Report.

For Property Transactions Sale & Purchase Deed, clearing mentioning Date & Value of Purchase & Sale along with Co-Owner.

Clear All Your Doubts !

What is a capital gain?

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 are 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.

What is a capital asset?

Here are some examples of capital assets: land, building, house property, vehicles, patents, trademarks, leasehold rights, machinery, jewelry.
This includes rights in or about 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 Business or Profession
Personal goods such as clothes, furniture held for personal use.
Agricultural land in India in a rural area.

How are short-term and long-term capital gains taxed?

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

What is relief under section 89(1)?

Tax is calculated on your total income earned or received during the year. If your total income includes any past dues paid in the current year, you may be worried about paying a higher tax on such arrears (usually tax rates have gone up over the years).
To save you from any additional burden of tax due to delay in receiving income, the tax laws allow a relief under section 89(1). If you have received any portion of your salary in arrears or in advance, or you have received a family pension in arrears, you are allowed some tax relief under section 89(1) read along with Rule 21A.

What is the due date for return filing for individuals?

Individuals need to file their return by 30th September of next year, i.e for income earned in every Financial year, the return has to be filed by 30th September.

What is Capital Gain and how is it taxed?

When an asset is sold, the profit arising from such transaction is taxed as Capital Gain. Such gain can be long term or short term and the taxability differs accordingly. In General gain on sale of assets held for more than 36months is called Long Term Capital Gain(LTCG taxed at 20%)and when assets are held for a lesser period then Short Term Capital Gain( taxed according to normal tax slab rates) arises. In the case of shares and securities, the period is 12 months in place of 36months.

Am I required to keep a copy of the return filed as proof and for how long?

Yes, under the Income-tax Act legal proceedings can be initiated up to 4 to 6 years before the current financial year. However, in certain the proceedings can be initiated even after 6 years, hence, it is advised to preserve the copy of the return for at least 6 years or maintain it as long as possible.

Do I need to attach details of TDS deducted, proof of investments, etc?

ITR return forms are attachment less forms and hence, you are not required to attach any document (like proof of investment, TDS certificates, etc.) along with the ITR (whether filed manually or electronically). However, these documents should be retained and produced before the tax authorities when demanded in situations like assessment, inquiry, etc.

Are Audit and Financial statements preparation covered in the plan?

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

Is the revised return covered under the plan?

Revised return filing on account of incorrect information provided by the assesses during the original return filing shall not form part of the plan.

Can a return be filed after the due date?

Yes, a belated return can be filed before the end of the assessment year or before completion of the assessment year, whichever is earlier.

Can I file a revised return to correct a mistake in the original return filed?

Yes, the return can be revised within one year from the end of the relevant assessment year or before completion of the assessment whichever is earlier. The filing of revised returns 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.

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