Maximizing Returns: Real Estate and Stock Market Capital Gains with Online Tax Consultants
Real estate and the stock market offer rewarding investment opportunities, often resulting in capital gains. To get such gains will lead to ensure tax compliance, our online tax consultants are here to guide you through the process.
Real estate capital gains denote to the profit you earn from the sale of property. These gains can be categorized into two parts:
Short-Term Capital Gains: This applies when you sell a property within two years of acquiring it. The profit is added to your taxable income and is subject to short-term capital gains tax.
Long-Term Capital Gains: If you hold a property for more than two years before selling it, the profit becomes long-term capital gains. These gains are taxed at a lower rate and may even be exempted if earned amount is reinvested in certain bonds or another property. Please call us for more clarification.
Stock market capital gains are the profits you earn from trading shares and stocks.
Short-Term Capital Gains: These arise when you sell shares or stocks within one year of their purchase. Short-term gains are added to your total income and taxed according to your income tax slab.
Long-Term Capital Gains: If you hold shares or stocks for more than one year before selling, the profit becomes long-term capital gains. As of 2021, they are taxed at a 10% rate without the benefit of indexation.
Purchase Deed and Sale Deed (Real Estate): There are few documents which prove your ownership, you need to provide, and the transaction details of the property. They are essential for calculating capital gains.
Brokerage Statements (Stock Market): Statements from your stockbroker detailing your stock transactions, including purchase and sale dates, are crucial for calculating capital gains from stocks.
Bank Statements: These are required to track your financial transactions related to real estate or stock investments, including the purchase price and sale.
Form 26AS: This is the document which provides information about TDS (Tax Deducted at Source) and can help you claim the credit while filing your ITR.
Capital Gain Statement (for Mutual Funds): If you have investments in mutual funds, you will need this statement to figure your capital gains from mutual fund units.
PAN Card: Your Permanent Account Number (PAN) is required for ITR filing.
Aadhaar Card: An Aadhaar card is mandatory for ITR filing as well.
Filing ITR when you have real estate or stock market capital gains can be complex, but our online tax consultants are experts in ITR-2. We provide guidance and support to ensure you file your returns accurately, taking advantage of all available exemptions and deductions
a. Section 54: Under Section 54 of the Income Tax Act, if you have long-term capital gains from selling a residential property and invest the proceeds in another residential property within two years (or construct a new one within three years), you can claim an exemption on the capital gains. This can suggestively reduce your tax liability.
b. Section 54EC: You can invest your long-term capital gains from real estate in specified bonds within six months to claim an exemption under Section 54EC. These bonds are issued by National Highways Authority of India (NHAI) and Rural Electrification Corporation (REC).
c. Joint Ownership: If you jointly own the property, each co-owner can claim exemptions separately depends on their share in the property.
d. Indexation Benefit: While calculating long-term capital gains, you can adjust the purchase price for inflation (indexation) to reduce the taxable gain.
a. LTCG Exemption for Equity Investments: As of the 2021 budget, long-term capital gains (LTCG) on equity investments are exempted up to Rs. 1 lakh per financial year. However, gains exceeding this limit are taxed at 10%. To save tax, consider selling investments strategically to keep gains under the exempted threshold.
b. STCG Set-Off: Short-term capital losses can even be set off against both short-term and long-term capital gains. Utilize short-term capital losses to offset your tax liability on short-term capital gains.
c. Section 10(38): If you have made long-term capital gains from the sale of equity shares or equity-oriented mutual funds, they are exempt from tax under Section 10(38). Ensure your investments qualify for this exemption.
d. Tax-Saving Investments: Consider making investments in tax-saving instruments like Equity-Linked Savings Schemes (ELSS), Public Provident Fund (PPF), or National Savings Certificate (NSC) to avail deductions under Section 80C. These can help reduce your overall tax liability.
e. Dividend Income: Be aware that dividends from shares are tax-free for the recipient, but the company distributing the dividend pays a dividend distribution tax (DDT).
Please call us on 📞 +91-9719586772 or write us at info@sktaxlawfirm.com for Real estate capital gains ITR, Stock market capital gains filing, Online tax consultant for ITR 2. We provide our services in Ghaziabad and all below location.
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