Understanding Capital Gains in India
Capital gains are the profits earned when you sell an investment or asset at a higher price than its purchase value. In India, capital gains taxation applies to stocks, mutual funds, property, bonds, and other investments.
Understanding capital gains is important for accurate tax filing and better financial planning.
Types of Capital Gains
Short-Term Capital Gains (STCG)
Short-term capital gains occur when assets are sold within a short holding period.
- Equity Shares & Equity Mutual Funds: Less than 12 months
- Property & Other Assets: Less than 24 months
Long-Term Capital Gains (LTCG)
Long-term capital gains occur when assets are held for a longer duration before selling.
- Equity Shares & Equity Mutual Funds: More than 12 months
- Property & Other Assets: More than 24 months
Formula to Calculate Capital Gains
Capital Gain Formula
Selling Price – Purchase Price – Expenses = Capital Gain
Example Calculation
Suppose you purchased shares worth ₹1,00,000 and sold them for ₹1,50,000.
- Selling Price = ₹1,50,000
- Purchase Price = ₹1,00,000
- Capital Gain = ₹50,000
Challenges Investors Face
Many investors struggle because of:
- Multiple broker statements
- Manual Excel calculations
- Incorrect tax reports
- Difficulty tracking transactions
Simplify Capital Gain Reporting with AccFolioPlus
AccFolioPlus helps investors:
- Automatically import broker statements
- Generate LTCG/STCG reports instantly
- Prepare ITR-ready reports
- Track investments in one dashboard
Conclusion
Calculating capital gains manually can be complex and time-consuming. With AccFolioPlus, you can simplify investment tracking, tax reporting, and portfolio management in one smart platform.