Long Term capital Gains are those gains that arise from sale of capital assets such as stocks, mutual funds, gold, properties, etc. While listed equity shares and equity oriented funds qualify for long term after 12 months, other capital assets are classified as long term on holding it for more than 24 months. As per section 112 and 112A of the Income Tax Act, 1961, Long term capital gains are taxed at 12.5%, with ₹1.25 lakh exemption available only to section 112A securities. The following blog explains the holding period criteria, tax rates, grandfathering provisions, exemptions available on long term capital gains such as section 54, 54B, 54EC, 54F, etc.Key HighlightsParticularsDetailsLTCG Tax Rate12.50%Equity Exemption₹1.25 lakhProperty Holding Period24 monthsListed Shares Holding Period12 monthsIndexation Available?Only in specified property casesPopular ExemptionsSection 54, 54EC, 54FWhat is Long-term Capital Gain (LTCG)?Capital gains or profits arising from the transfer of Long-Term Capital Assets is referred to as Long-Term Capital Gains or LTCG. An asset held for more than 24 months is termed as a long term capital asset.For listed equity shares, equity oriented funds, and units of business trust, the holding period is 12 months. (if held for more than 12 months, they are considered long term capital assets)Long-term Capital Gain (LTCG) Tax Rate The following tax rates are applicable to long-term capital gains:Asset TypeHolding period (LTCA if held for more than the specified period)Tax RateListed Equity Shares12 months12.50%**Equity Mutual Funds12 months12.50%**Property (land/building)*24 months12.50%Gold / Gold ETF24 months12.50%Debt Mutual Funds (post Apr 2023)Any holding periodAs per slab* - 20% tax rate with indexation benefits available for resident individuals and HUFs whose assets were purchased before 23rd July 2024.**- Exemption up to Rs. 1.25 lakhs available for listed equity shares, equity oriented funds and units of business trust.Calculation of LTCG TaxTo calculate the long-term capital gains accurately, follow the steps mentioned below:1.

There are various exemptions available on long term capital gains on sale of land such as section 54F, 54EC and 54B. On satisfaction of conditions prescribed, exemptions can be claimed under the respective sections. However, short term capital gains are not eligible for the aforesaid exemption.Key HighlightsSome of the tax saving options for land sale are:Capital gain exemption under section 54F - investment in a residential property.Capital gain exemption under section 54EC - investment in specified bonds (NHAI, RECH, PFCL, IRFCL).Capital gain exemption under section 54B - investment in urban agricultural land.How to Save Tax on the Sale of Land?Profits arising from the sale of immovable property, such as a plot of land, building, or both, are taxable in the hands of taxpayers under the head "Capital Gain" of the Income Tax Act. It is classified as short term or long term capital gain, depending on the holding period.However, taxpayers can save tax on long term capital gain by claiming exemption under sections 54F, 54EC and section 54B of the Income Tax Act. These sections provide capital gain exemptions on reinvesting gains in specified assets and bonds, that help taxpayers legally save on tax arising from such transactions. The following are the tax saving strategies to avoid high capital gains taxation on property sales.1. Claim Transfer Expenses Expenses incurred solely for the purpose of transfer can be claimed as a deduction in calculation of capital gains tax.For example, you can claim deductions on stamp duty charges, brokerage, legal fees etc.

Section 54F exemption of the Income Tax Act helps taxpayers save long term capital gains tax on sale of any capital asset except residential house property, on satisfaction of certain conditions. Investing the sale proceeds in a residential property, you can claim an exemption up to Rs 10 crores.Key HighlightsOnly the proportion of sales proceeds invested in the new residential property can be claimed as an exemption.The new residential house should be situated in India.The exemption is available only to individuals and HUF, including non-residents.What is Section 54F Exemption?Section 54F provides capital gain exemption on sale of any property, other than a residential house property. Be it stocks, gold, commercial buildings, they are eligible for exemption under section 54F. Only the long term capital gains are eligible for this exemption. This means that you should have held the assets for more than 24 months, (12 months in some cases).

Saving capital gains tax in India is possible through smart tax planning using legal exemptions and deductions under the Income Tax Act. By investing in options like capital gain bonds, residential property, or eligible mutual funds within prescribed timelines, taxpayers can reduce or even eliminate capital gains tax on the sale of assets.What is Capital Gains Tax?Capital gains are the profits investors make when they sell their assets for a higher price than the price at which they were acquired. They include land, vehicles, jewellery,  shares, and stocks.Capital gains are taxable, and there are two types: short-term and long-term. Short-term capital gains result from the sale of an asset held for up to 24 months (2 years). The criteria is 12 months for listed equity shares, equity-oriented funds and units of UTI.Long-term capital gains result from the sale of assets held for more than the holding period as discussed above.Long-Term Capital Gains TaxThere are certain exemptions available for long-term capital gains. If you carry out specific investments/activities outlined in the Income Tax Act, you can legitimately save on long-term capital gains tax.

Section 54 of the Income Tax Act, allows taxpayers to claim an exemption from Long-term Capital Gains arising from sale of residential house property, when such gains are reinvested in another residential property. The taxpayer must purchase a new residential house within 2 years or construct a new house within 3 years from date of sale. However, the maximum allowed exemption limit is capped at Rs. 10 Crore. Overview of Section 54 ExemptionAspectDetailsWho can claimIndividuals and HUFs onlyCapital gains typeLong-term capital gains from sale of residential house propertyExemption limitRs. 10 CroreTax regimeAvailable under both old and new tax regimesWhat is Section 54?Section 54 provides an exemption from long-term capital gains tax when an individual sells a house and purchases another house using the capital gains.

Section 269SS of the Income Tax Act, prohibits a person from accepting loans, deposits, or advances in relation to a transfer of an immovable property of Rs. 20,000 or more in cash. Such transfers must be received through prescribed banking modes such as account payee cheque, bank draft or electronic transfer. The Rs. 20,000 limit applies to transactions to:Per personPer daySingle transactionIn simple terms, a person cannot accept a loan, advance or deposits of Rs.

Income tax is integral to Indian tax law for people and companies. Thе CRN, full form in incomе tax, is Challan Rеfеrral Numbеr, and onе of thе stеps thе govеrnmеnt has takеn to makе it еasiеr for pеoplе to filе and pay thеir taxеs. This article dеtails thе idеa of CRN in incomе tax and what it mеans and how to makе it and usе it to pay taxеs.What is CRN in Income Tax?A unique 14 digit codе referred to as Challan Rеfеrral Numbеr is madе by using thе Income Tax Dеpartmеnt's е-filing portal. The CRN number will get generated automatically while making the tax paymеnts likе self assеssmеnt tax, tax collеctеd at source or tax deducted at sourcе (TDS). The CRN number helps to connect the tax payment with the taxpayer account identification, thereby confirms that thе payment is crеditеd corrеctly and matchеd too.Significance of CRN in Income TaxThе adoption of CRN has dramatically hеlpеd thе tax paymеnt procеss in India.

Maximum professional tax payable will not exceed Rs.2,500 per annum irrespective of income level of the person. The professional tax applicable depends on whether the person is an employee, a specified professional or others. For FY 2025-26, the professional tax due date is 31st July, 2025. Professional tax payment can be made online, following simple steps. In this article, we will learn about professional tax in West Bengal.West Bengal Professional Tax RuleAs per Clause 2 of Article 276 of the Indian Constitution, professional tax in West Bengal is levied as per the provisions under the West Bengal Tax on Profession, Trade, Callings and Employment Act, 1979. Professional Tax is broadly classified into two types:Professional Tax Registration (PTRC): If you are a salaried employee, your establishment will have to obtain PTRC, this tax is automatically deducted by your employer and deposited to the state government. Professional Tax Enrollment (PTEC): If you are self-employed, you must pay it on your own by visiting any of the WB professional tax offices.

Professional tax is a kind of tax levied by the state government on salaried or self-employed individuals. As per Clause 2 of Article 276 of the Indian Constitution, it is applicable to all kinds of professions, employment, and traders in the particular state. Only 17 states impose a professional tax in India, and Karnataka is one of them. In this article we will learn about the professional tax in Karnataka, including its slab rates and related information.Professional Tax In KarnatakaProfessional tax in Karnataka depending on your gross income. Whether you are a salaried employee working in a private organization or are associated with a government entity, all individuals must pay professional tax in Karnataka.

Professional tax is a tax imposed by state governments in India on individuals engaged in various professions, trades, and employment. While the tax amount varies by state, it is capped at Rs. 2,500 per year. Here’s a comprehensive guide to understanding professional tax, its rates, exemptions, and how to pay it.   What is a Professional Tax, and Who Levies it?Professional tax is a tax on all kinds of professions, trades, and employment and is levied based on the income of such profession, trade, and employment. It is levied on employees, a person carrying on the business, including freelancers, professionals, etc., subject to income exceeding the monetary threshold if any.Professional tax is levied by the state government (not all states in the country choose to levy professional tax).