Capital gain in case of gifted or inherited properties.

0 comments Monday, June 11, 2012

A capital asset being shares and securities is considered as long term capital asset if it is retained for more than 12 months and 36 months in case of other assets and gain, if any arising from its sales is considered as long term capital gain.

In case of long term capital gains the capital gains is calculated according to indexed cost of acquisition and improvement. Cost inflation index of the year of acquisition and improvement is considered for the purpose of capital gain calculation.
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