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Long term Capital Gain

1 reply, 2 voices Last updated by Vaishali Dhameja 1 week ago
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  • #6431

    Aaditya yadav
    Participant
    @@ditya123

    How can I calculate long term capital gain?

    #6432

    Vaishali Dhameja
    Participant
    @vinnied99

    Long term capital gain is the gain arisen on the transfer of long-term capital asset.
    Long term capital gain:
    The full value of consideration (Consideration received) XXXXX
    Less: Expenditure incurred in connection with a transfer of the capital asset (E.g., brokerage, commission, etc.) (XXXX)
    Net sale consideration XXXXX
    Less: Indexed cost of acquisition (XXXXX)
    Less: Indexed cost of improvement, if any (XXXXX)
    Long-Term Capital Gain XXXX

    1. The formula for computing Indexed cost of acquisition:
    (Cost of acquisition × Cost inflation index of the year of transfer of a capital asset) ÷ (Cost inflation index of the year of acquisition)

    2. The formula for computing Indexed cost of improvement:

    (Cost of improvement × Cost inflation index of the year of transfer of a capital asset) ÷ (Cost inflation index of the year of improvement)

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