Capital gains tax in India becomes payable in the financial year when you sell or transfer a capital asset. The type of gain (short-term or long-term) and the nature of the asset determine when is capital gains tax payable. Here’s how it works:
The tax liability arises immediately in the year of sale/transfer, even if you receive the payment in installments.
For short-term capital gains (STCG), tax is applicable in the same financial year as the sale, and the rate depends on your income slab (except for equities taxed at 15%).
For long-term capital gains (LTCG), tax is due in the year of sale, with rates varying by asset type (e.g., 20% with indexation for property, 10% for equities above Rs1 lakh exemption).
If advance tax wasn’t paid or was insufficient, settle the dues before filing your ITR (due July 31 or Sept 30 for audit cases).
For property sales above Rs 50 lakhs, the buyer deducts 1% TDS (Section 194-IA), which is adjusted against your final tax liability.
If you reinvest LTCG from property in another house (Section 54) or bonds (Section 54EC), tax is deferred or exempted.
I hope you understand capital gains tax when payable.
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Also check
How to Calculate Capital Gains Tax on House Sale?
Time Limit for Deposit in Capital Gain Account Scheme
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When is Capital Gains Tax Payable?
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2025-05-27T18:35:45+00:00 2025-05-27T18:35:47+00:00Comment
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