TL;DR for CAs
- Track holding period and grandfathering for listed equity.
- Property transfers need stamp duty value checks under Section 50C.
- Indexation rules depend on asset class and acquisition date.
What it is
Capital gains taxation differs for listed equity (Sections 111A/112A) and immovable property. Recent Finance Act changes alter indexation and rates — always verify the year of transfer.
Who it applies to
Investors, HNIs, and businesses disposing of capital assets.
Key provisions
- Listed equity: STCG vs LTCG thresholds and exemptions
- Property: 50C stamp duty value vs agreement value
- Cost of improvement and brokerage deductions
Practical tips for CAs
Maintain broker statements and demat reports. For property, collect purchase deed, improvement invoices, and circle-rate computation.
Common mistakes
Wrong holding period; ignoring Section 50C; incorrect grandfathering for pre-2018 equity.
For general guidance only. Verify with the latest Finance Act, GST notifications, and ICAI guidance notes before advising clients.