Capital Gains
Sold property or shares? The computation decides the tax.
Two people can sell the same flat for the same price and pay very different amounts of tax, depending on how the cost is computed, what improvements are counted, and which exemption is claimed in time. Most of the saving is available before the sale — and a fair amount of it is still available shortly after, if you move quickly.
If you are planning a sale rather than reporting one, call before you sign. That is where the planning room is.
What people call about
Sold a house or flat
The largest single tax event most families ever have. Cost of acquisition, improvements, and the exemption route all move the number substantially.
Sold inherited or ancestral property
Cost is not what you paid, because you did not pay anything. How it is established makes a very large difference to the gain.
Sold shares or mutual funds
Holding period decides the treatment. Losses elsewhere in the portfolio may be usable against the gain.
Planning a sale in the next few months
This is the best time to call. Timing, structuring and reinvestment planning are all available before the transaction, and mostly gone after it.
How the gain gets worked out
Establishing the real cost of acquisition
Purchase price, or fair market value where the asset was inherited or acquired long ago. This single figure often moves the tax more than anything else.
Adding what can legitimately be added
Improvement costs, transfer expenses, brokerage. Documented properly, these reduce the gain.
Determining holding period and treatment
Long term or short term changes both the rate and the exemptions available.
Choosing the exemption route
Reinvestment in residential property, or in specified bonds, each with their own conditions and timelines. Which one suits depends on what you intend to do with the money.
Meeting the deadlines that make it stick
Exemptions come with reinvestment windows and, in some cases, a requirement to park funds in a capital gains account before the filing date. Missing these undoes the planning entirely.
What to bring
- Sale deed or transaction statement
- Original purchase deed, or evidence of how the asset was acquired
- Receipts for improvements or construction
- Brokerage and transfer expense receipts
- For shares — the broker's capital gains statement
- Details of any reinvestment already made or planned
Rates, indexation and exemption limits change. Nothing on this page states a specific figure for that reason — the numbers that apply to you will be worked out against the provisions in force for your year.
Fees
| Service | Fee |
|---|---|
| Capital gains computation and advice | Call and discuss |
| Pre-sale planning consultation | Call and discuss |
| ITR filing including capital gainsScales with the number of transactions | ₹4,000 – ₹10,000 |
Ranges are indicative; computation and planning work is quoted after a look at the transaction, since it depends entirely on how the asset was acquired and what records exist. 18% GST applies on professional fees.
Questions people ask first
I have already sold. Is it too late to save anything?
Often not. Several exemption routes remain open for a period after the sale, and some have windows measured in months. It depends on the date of transfer, so call with that date to hand.
How is cost calculated for a property I inherited?
You step into the shoes of the previous owner for the purpose of cost and holding period, and where the acquisition was long ago there are provisions for using fair market value instead. Establishing this properly is most of the work.
What if I do not have the original purchase documents?
Common with older and inherited properties, and usually workable. There are other ways to establish cost, though they take more effort and it is better to start early.
Can losses be set off against the gain?
Sometimes, depending on the type of loss, the type of gain, and whether earlier losses were properly carried forward in past returns. Worth checking rather than assuming.
Should I call before or after selling?
Before, if you possibly can. The options available before a sale are meaningfully wider than the options afterwards.
Before you sign, or soon after
Call with the transaction details and you will get a clear view of what the tax looks like and which routes are still open to you.