How to Compute Income Under Head Capital Gain Section 48

As per section 48 of the income tax Act, 1961 the income chargeable under the head “Capital Gain” shall be computed by deducting from the value of the consideration received or accruing as result of transfer of the capital asset the following amounts, namely:-

  1. Expenditure incurred wholly and exclusively in connection with such transfer.
  2. The cost of acquisition of the asset and the cost of any improvement thereto. 

Long term capital gain

Amount

Sale consideration

Less:

Indexed Cost of acquisition

Indexed Cost of improvement

Cost of transfer

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Capital Gain

Less: Deduction u/s(54 ,54B, 54 F …)

*****

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LTGC charable to tax

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Short term capital gain

Amount

Sale consideration

Less:

Cost of acquisition

Cost of improvement

Cost of transfer

******

*****

*****

***

Capital Gain

Less: deduction u/s(54 ,54B, 54 F …)

*****

****

STGC charable to tax

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