What is a capital gain - IndianMoney.com

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If you buy

• A house
• Debt fund (Gold Exchange traded fund, Fixed maturity plan, Debt mutual fund,Liquid fund).
• Equity (shares and mutual funds)
• Gold jewelry/ornaments/coins

 And sell it for a profit your gains are called capital gains.

  House /Property /Apartment 

Save on long term capital gains tax when you sell your house: 

Section 54

You need to invest your long term capital gains in

A residential house/property/apartment within 2 years of selling your house.
If you have already purchased a residential house/property/apartment within a year before selling your house
Construct a residential house/property within three years of selling your house
You can set off (adjust your long term capital gains against the cost of this newly purchased/constructed house or apartment up to its cost).
You have to invest the long term capital gain in a single residential house within the country.

You can deposit your long term capital gains in a capital gains account scheme 

before the due date of filing your income tax returns.

You can withdraw this money and then invest in the residential house/property within the time specified (2 or 3 years)
You get interest on this amount just like a savings bank account.

Capital gains on selling your gold jewelry:

Gold jewelry (Physical gold)

  

You need to invest your long term capital gains in :

A residential house/property/apartment within 2 years of selling your house.

If you have already purchased a residential house/property/apartment within a year before selling your house
Construct a residential house/property within three years of selling your house
You can set off (adjust your long term capital gains against the cost of this newly purchased/constructed house or apartment up to its cost).
You get this exemption provided you do not have more than a single house/property.

Capital gains on debt funds:

These are the types of debt funds.

Debt mutual fund
Liquid fund
Gold Exchange traded fund
Fixed maturity plan (FMP)
Monthly income plan (MIP)
Fund of funds.

Debt Funds

 

Capital gains on selling equity funds:

Shares/equity mutual funds

 

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