Core concepts
- 01STCG / LTCG distinction by holding period (12/24/36 months varies).
- 02Sec 112A: LTCG on listed equity > ₹1 lakh @ 10% (no indexation, with STT).
- 03Sec 111A: STCG on listed equity @ 15%.
- 04Sec 50 — depreciable assets: gains always STCG (block of asset concept).
- 05Exemptions: 54 (residential house), 54B (agri), 54EC (bonds ₹50L), 54F (any LTCA → res house).
Flowchart summary
Capital Gains Structure | Period <= 24/36 mo --> STCG | Period > 24/36 mo --> LTCG (indexation if applicable) | Exemptions: 54, 54B, 54D, 54EC, 54F, 54GA | Slump Sale (50B), Insurance Receipts (45), Buy-back (46A)
Exam-critical pointers
- ⭐Indexation NOT allowed for Sec 112A LTCG or 50AA (specified mutual funds).
- ⭐Sec 54 — new property must be purchased 1 yr before / 2 yrs after, or constructed within 3 yrs.
- ⭐Sec 54EC limit: ₹50 lakh per FY (cumulative); 5-year lock-in.
- ⭐Slump sale (Sec 50B) — gains = sale consideration − net worth of undertaking.
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