Waht is rate of capital gains tax?

Also need to know how to save on capital gains;

Short Term Capital Gains tax:
1) Property (Plot, House flat etc.,) if sold within 36 months. No fixed rate of tax for this income. This income will be added to assessee's total income and taxed as per slabs.

2) Shares and mutual fund units having more than 50% of equity component, if sold within 12 months, then the tax will be @10% flat rate.

Long Term Capital Gains:
A) For S.No.1 above, tax @ 20% flat rate (based on inflation index) if the assesset is sold after 36 months.

B) For S.No.2 above, No tax on Shares. On mutual fund units, tax @20% flat with indexation or 10% flat without indexation.

Tax savings:
For short term capital gains in S.No.1, normal tax savings like 80c ect. will apply.

For S.No.2 no tax savings. You have to pay tax.

For Long term capital gains on which 20% tax is payable, you can save tax in two ways. You can invest the gains in another asset (House or Flat) or Deposit the gains in Capital Gains bonds.

http://in.taxes.yahoo.com/taxcentre/ncap...

capital gains are mainly of two kind, one is of immovable property and the other is for shares.debentures/mutual funds. The rates and system of taxing are different for both. Which one do YOU want to know about.

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