The Classic Partners LLP
Capital Gain Computation
Accurate capital gain computation across shares, mutual funds, property, and gold — cost of acquisition, indexation choice, improvements, expenses, set-offs, and a notice-proof working file.
Compute My GainsHow is Capital Gain Computed?
The basic formula is simple: Capital Gain = Full Value of Consideration − (Cost of Acquisition + Cost of Improvement + Transfer Expenses). The complexity is in the details — fair market value substitution for pre-2001 assets, the 31 Jan 2018 grandfathering for listed equity, the indexation option for old property, deemed consideration under Section 50C, and FIFO matching for demat holdings.
A wrong computation either overpays tax or invites an income tax notice when your figures don't match AIS. Our computations cover securities and property and other assets alike, with a complete working file you can defend years later.
Elements of a Correct Computation
- Cost of acquisition — actual cost, or FMV as on 1 April 2001 for older assets, or previous owner's cost for gifts/inheritance.
- Indexation choice — for pre-23 July 2024 land/building: 20% with CII indexation vs 12.5% without, whichever is lower.
- Cost of improvement — documented renovation, construction, and capital additions.
- Transfer expenses — brokerage, stamp duty, legal fees, and commissions on the sale.
- Exemptions — Sections 54/54F/54EC reinvestment relief reducing the taxable gain.
- Set-off & carry-forward — current and brought-forward capital losses applied in the right order.
What We Handle
Asset-Wise Working
Separate, auditable computation for every asset sold.
FMV & Valuation
2001 FMV reports and 31 Jan 2018 grandfathering values.
Indexation Optimisation
CII-indexed vs flat-rate tax compared on actual numbers.
Broker Reconciliation
FIFO matching across demat accounts and AMC statements.
Loss Set-Off Order
STCL/LTCL applied for the maximum legal tax saving.
Schedule CG Filing
Final figures filed in ITR-2/ITR-3 with AIS reconciliation.
Why Choose The Classic Partners
- Qualified Chartered Accountants computing gains across every asset class daily.
- Optimised, not just accurate — every legal option compared before filing.
- Notice-proof documentation — workings that stand up in scrutiny.
- Transparent fees and a single point of contact for your filing.
Frequently Asked Questions
What is the formula for capital gain calculation?
Capital gain equals the full value of consideration minus the cost of acquisition, cost of improvement, and expenses incurred wholly in connection with the transfer. For eligible old property, indexed cost may be used under the 20% option.
What is the Cost Inflation Index (CII)?
The CII is a government-notified index used to adjust the purchase cost for inflation when computing long-term gains under the 20%-with-indexation option, available for land and buildings acquired before 23 July 2024 by residents.
How is cost calculated for assets bought before 2001?
For assets acquired before 1 April 2001, you can substitute the fair market value as on that date (capped at stamp-duty value for property) as your cost — usually reducing the taxable gain substantially.
How are gains computed on gifted or inherited assets?
The cost and acquisition date of the previous owner are adopted. The holding period also includes the previous owner's period, which usually makes the gain long-term.
Which expenses can be deducted from the sale price?
Brokerage, legal fees, stamp duty borne by the seller, transfer charges, and commission directly connected with the sale are deductible. Routine maintenance and interest costs generally are not.
Need your capital gains computed?
Get an accurate, optimised, fully documented computation from our CAs.
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