Long term capital gain in case of assets other than securities is applicable where holding period of asset is more than 3 years and in case of securities the period is one year.
Capital Gain Index for Financial year 2012-13 is 852SECTION 48, EXPLANATION (v) OF THE INCOME-TAX ACT, 1961 - CAPITAL GAINS - COMPUTATION OF - NOTIFIED COST INFLATION INDEX FOR FINANCIAL YEAR 2012-13
NOTIFICATION NO. 38/2012 [F. NO. 142/2/2012-SO(TPL)]/SO 2187(E), DATED 17-9-2012
In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), Central Board of Direct Taxes, number S.O. 709 (E), dated the 20th August, 1998, namely:-
In the said notification, in the Table, after serial number 31 and the entries relating thereto, the following serial number and entries shall be inserted, namely :-
Cost Inflation Index
Long Term Capital Gains is computed as below :
LTCG = Full value of consideration received or accruing - (indexed cost of acquisition + indexed cost of
improvement + cost of transfer)
Where, Indexed cost of acquisition =Cost of acquisition x CII of year of transfer /CII of year of acquisition
Indexed cost of improvement =Cost of improvement x CII of year of transfer /CII of year of improvement
CII = Cost Inflation Index (Please see chart given below)
Tax liability on LTCG to be taken at 20%.
If total income other than LTCG is less than zero slab,LTCG over the zero slab only attracts tax at 20%.