Capital Gains · Panaji, Goa

Capital Gains Tax Advisory

Complete capital gains tax planning and compliance in Goa — computation, exemptions on reinvestment, property sale advisory, and securities taxation handled by qualified Chartered Accountants.

Overview

Every asset sale has a tax consequence.

Whether you sell a flat in Goa, redeem mutual fund units, or transfer unlisted shares, the Income Tax Act charges capital gains on the profit. The rate, the method of computation, and the exemptions available differ significantly across asset classes and holding periods.

Getting the computation wrong — missing indexed cost, ignoring grandfathering for pre-2018 equity, or failing to claim Section 54 exemption — can result in unnecessary tax outflow or a notice from the department. Our capital gain computation service and property sale advisory ensure every rupee is accounted for correctly.

What we cover

Capital gains across every asset class.

One specialist practice for all capital gain scenarios — property, equity, debt, gold, and more.

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Short-Term vs Long-Term Classification

Correctly classifying a gain as STCG or LTCG — the threshold varies from 12 to 36 months depending on asset type — to apply the right tax rate and identify available exemptions.

Indexation & Cost Computation

Computing indexed cost of acquisition using the Cost Inflation Index, applying grandfathering for listed equity held before 31 January 2018, and factoring in improvement costs.

Capital Gains on Securities

Equity shares, mutual funds, ETFs — LTCG at 12.5% above ₹1.25 lakh (Section 112A), STCG at 20% (Section 111A), and debt fund taxation at slab rates post-2023.

Property Sale Advisory

End-to-end guidance on property sale — TDS (Section 194-IA), stamp duty value adjustments (Section 50C), NRI lower-deduction certificates, and repatriation.

Reinvestment Exemptions

Claiming Section 54, 54F, 54EC, and 54B exemptions with the correct reinvestment timeline, Capital Gains Account Scheme deposits, and documentation.

ITR Filing & Set-Off

Reporting capital gains in Schedule CG of ITR-2 or ITR-3, applying loss set-off across heads and carry-forward for up to eight assessment years.

Tax rates at a glance

Capital gains tax rates post-Budget 2024.

12.5%

LTCG — Listed Equity & Equity MF

Section 112A. Gains above ₹1.25 lakh per year taxed at 12.5% without indexation (Budget 2024).

20%

STCG — STT-Paid Equity

Section 111A. Short-term gains on listed equity and equity-oriented MFs taxed at a flat 20%.

12.5%

LTCG — Property & Other Assets

Section 112. Long-term gains on property, gold, unlisted shares taxed at 12.5% without indexation (post 23 Jul 2024); indexation available for property acquired before that date.

Slab

STCG — Most Other Assets

Short-term gains on property, gold, debt instruments, and most other assets added to total income and taxed at applicable slab rate.

Frequently asked questions

Capital gains in India, answered.

What is a capital gain under Indian income tax law?

A capital gain arises when you transfer a capital asset — land, building, equity shares, mutual fund units, gold, or bonds — for a consideration higher than its cost. The profit is taxed under 'Capital Gains' in your ITR. The gain is classified as short-term or long-term depending on the holding period, which varies by asset class.

What is the difference between short-term and long-term capital gains?

For listed equity and equity-oriented mutual funds, more than 12 months is long-term. For immovable property, more than 24 months. For unlisted shares and most other assets, more than 36 months. Long-term gains attract lower rates and may benefit from indexation (for pre-July 2024 acquisitions), while short-term gains on equity are taxed at 20%, and on other assets at slab rates.

Can capital gains be reduced by claiming exemptions?

Yes. Section 54 exempts gain on sale of a residential house if reinvested in another house. Section 54F covers sale of any long-term capital asset reinvested in a house. Section 54EC allows investment up to ₹50 lakh in specified bonds (NHAI/REC) with a 5-year lock-in. Section 54B covers agricultural land. Proper planning and timely reinvestment within prescribed deadlines are essential.

What is indexation and how does it reduce capital gains tax?

Indexation adjusts the original cost using the Cost Inflation Index (CII) notified annually, reducing the taxable gain. An asset bought for ₹20 lakh in 2005-06 may have an indexed cost of ₹70 lakh or more by 2024-25. Note: Budget 2024 replaced the 20%-with-indexation rate with a flat 12.5%-without-indexation for assets acquired on or after 23 July 2024, with a grandfathering option for earlier acquisitions.

How is capital gain on property sale taxed for NRIs?

The buyer must deduct TDS at 20% (LTCG) or 30% (STCG) plus surcharge and cess before remitting sale proceeds to an NRI. The NRI can apply for a lower TDS certificate (Form 13) to limit deduction to actual liability. Section 54 and 54EC exemptions are available to NRIs, and repatriation of net proceeds from an NRO account is governed by FEMA's USD 1 million annual limit.

What records should I keep for capital gains computation?

Retain: original purchase deed or broker contract note with date and cost; improvement records; sale agreement with stamp duty value; brokerage, STT and transfer charges; indexation workings; and proof of reinvestment (bond allotment letter or property registration). Organised records prevent scrutiny disputes and enable accurate ITR filing.

How can N D Savla & Associates help with capital gains in Goa?

We provide end-to-end capital gains advisory: computing the exact gain with correct indexation or grandfathering, identifying available exemptions, advising on reinvestment timing, obtaining lower TDS certificates for NRIs, filing ITR-2 or ITR-3 with Schedule CG, and coordinating FEMA compliance for non-residents. Our qualified CAs in Panaji handle residents and NRIs across all asset classes.

Selling an asset? Plan your tax first.

Speak with a qualified Chartered Accountant in Goa before you sign the sale deed. We'll compute your exact gain, identify every exemption you qualify for, and handle the filing — no surprises.