How is capital tax calculated?

What is the procedure or the formula to calculate capital tax?

Answers (1)

252 votes
Capital Gains is calculated by deducting from full value of consideration
received or accumulated as a result of transfer the following amount:

(i) Expenditure incurred wholly and exclusively in connection with such transfer
(e.g. brokerage or commission for securing a purchaser, registration fee,
travelling expenses in connection with transfer); and

(ii) the cost of acquisition of the capital asset and cost of improvement thereto.

However, in case of transfer of a long term capital asset after deducting the
expenditure incurred wholly and exclusively in connection with such transfer,
the 'indexed cost of acquisition' and 'indexed cost of improvement' has to be

Googling your legal issue online?

The internet is not a lawyer and neither are you.
Talk to a real lawyer about your legal issue.

Popular Tax Lawyers

Advocate Bala Janaki
330 Thambuchetty Street, Chennai
36 years Experience
Advocate Ravi Jadhav
Koregaon Park, Pune
13 years Experience
Advocate Manish G Varma
Fort, Mumbai
19 years Experience
Advocate Suksham Aggarwal
District and Sessions Court, Ambala
8 years Experience

Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at and has been responded by one of the Tax Lawyers at to address the specific facts and details. You may post your specific query based on your facts and details to get a response from one of the Lawyers at or contact a Lawyer of your choice to address your query in detail.

Related Questions

" has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."