Capital Gains Tax Computation & Advisory
Accurate computation is the foundation of proper capital gains tax compliance. We calculate your STCG and LTCG for every capital asset sold — including property, shares, mutual funds, and gold. We apply the correct Cost Inflation Index (CII) for indexed cost of acquisition and indexed cost of improvement on long-term assets.
Moreover, we identify set-off and carry-forward opportunities under Sections 70–74 of the Income Tax Act. Capital losses can be set off against capital gains — saving you significant tax. Our advisory covers both resident individuals and NRIs. Learn about individual income tax return filing here.
Additionally, our experts stay updated with Budget changes, ensuring your computations reflect the latest applicable tax rates. Call +91 9818209246 for a free assessment.
Long Term Capital Gains (LTCG) Tax Filing — Property & Shares
LTCG on the sale of immovable property (held over 24 months) is taxed at 12.5% without indexation (post Budget 2024) or 20% with indexation — whichever is beneficial and applicable. For listed equity shares and equity mutual funds, LTCG above Rs. 1.25 lakh per year is taxed at 12.5% if held for more than 12 months.
We handle LTCG filing for property sales, share transfers, mutual fund redemptions, bond sales, and unlisted company shares. Consequently, you never miss a deadline or miscalculate your liability. Our team files ITR-2 and ITR-3 with complete Capital Gains Schedules.
For property-related LTCG, we also assist with TDS compliance under Section 194-IA. See our TDS on sale of property service here.
Short Term Capital Gains (STCG) Tax Planning & Filing
Short-term capital gains arise when a capital asset is sold before the prescribed holding period. STCG on listed equity and equity-oriented funds (held under 12 months) is taxed at 20% post Budget 2024. STCG on other assets — property, debt mutual funds, gold — is added to income and taxed at applicable slab rates.
Similarly, intraday trading gains are treated as speculative business income, not capital gains. We help you correctly classify your income, minimising tax disputes. Our experts file the correct ITR form and ensure all schedules are accurately completed. Learn about income tax audit services here.
Furthermore, we advise on tax-loss harvesting strategies — particularly relevant for equity investors — to legally reduce your STCG liability within a financial year.
Capital Gains Exemption Planning — Section 54, 54EC & 54F
India’s income tax law provides multiple exemptions to reduce capital gains tax legally. Section 54 allows exemption on LTCG from residential property if the gains are reinvested in another residential property. Section 54EC allows exemption if gains are invested in specified bonds (NHAI, REC) within 6 months, up to Rs. 50 lakhs.
Section 54F allows full exemption on LTCG from any asset other than residential property, provided the full net consideration (not just gain) is invested in a new residential house. Additionally, Section 54B provides relief for agricultural land sales. As a result, careful exemption planning can legally reduce your tax to zero in many cases.
SetupFiling’s tax planners evaluate your specific situation and recommend the optimal exemption strategy. Learn about advance tax payment obligations here.
Capital Gains ITR Filing — ITR-2 & ITR-3
Capital gains must be disclosed in the correct ITR form. Individuals and HUFs with capital gains but no business income must file ITR-2. Those with both capital gains and business/professional income must file ITR-3. Filing ITR-1 when capital gains exist is a common mistake that leads to notices and penalties.
Our tax professionals handle the complete ITR filing process — from data collection, form selection, schedule completion, and online submission. We file on or before the due date to avoid interest under Section 234A and penalty under Section 234F. File your income tax return with us today.
Moreover, for clients with capital gains from multiple asset classes — property, equity, mutual funds, and bonds — we consolidate all data and file a comprehensive, error-free return.
NRI Capital Gains Tax Filing & TDS Refund
NRIs selling property in India face a higher TDS burden — 20% on LTCG and up to 30% on STCG is deducted by the buyer under Section 195. However, the actual tax liability may be lower after applying exemptions and DTAA (Double Taxation Avoidance Agreement) benefits. Consequently, many NRIs are entitled to significant TDS refunds.
SetupFiling assists NRIs with Lower Deduction Certificates under Section 197, capital gains computation considering DTAA provisions, ITR filing in India, and TDS refund claims. We serve NRI clients from the US, UK, UAE, Singapore, Australia, Canada, and other countries.
Additionally, we handle property sale documentation, Form 15CA/15CB, and repatriation compliance. Contact us for NRI capital gains tax services.
Capital Gains Tax on Shares & Mutual Funds
India’s equity markets have seen explosive growth, making capital gains tax on shares and mutual funds a key concern for millions of investors. Post Budget 2024, LTCG on equity (above Rs. 1.25 lakh) is taxed at 12.5% and STCG at 20%. Debt mutual fund gains are now taxed at income slab rates regardless of holding period.
We help investors compute capital gains from stock market transactions using broker statements (P&L reports), reconcile with Form 26AS and AIS (Annual Information Statement), and file accurate ITR-2 with Schedule CG. See individual income tax return filing services.
Furthermore, for high-volume traders, we also evaluate whether income should be classified as capital gains or business income — a critical distinction that affects applicable tax rates and compliance obligations.
