created by
Rajesh Dhruva
CAPITAL GAINS » CAPITAL GAINS
CAPITAL GAINS
As the name suggests capital gains are profits arising upon sale of capital assets such as shares, securities, immovable properties etc.
NRIs are offered a unique benefit of paying tax on gains computed in foreign exchange earnings i.e.[ profits after considering the devaluation of rupee] as regards profits from shares and securities held for more than 1 year. For other assets held for more than 3 years at par with residents, NRIs are also granted the benefit of " cost indexation"; exemption as regards investment in capital bonds and exemption re: reinvestment in house properties or listed securities etc. The subject is defined as under:
Long Term Capital Gains of Immovable Property & Other Assets other than Residential House, Shares & Mutual Funds
Short Term Capital Gains from Immovable Property/ Other Assets.
Exemption of Long Term Capital gains invested in Capital gains bonds
Short Term Capital Gains from Immovable Property/ Other Assets.
Long Term Capital Gain of Specified Assets
Exemption of Long Term Capital gains of other Assets upon investment in Residential PropertyExemption of Long Term Capital gains invested in Capital gains bonds