Capital Gain Calculator in Excel

>> 17184 Views

20-April-2013

Download calculator for Financial Year 2013-14

When Capital gain is charged to tax?
 
Capital gain tax liability will arise when following conditions are satisfied:
1)  There should be a capital asset;
2)  The capital asset is transferred by assessee during the previous year;
3)  Profit or gain arises as a result of its transfer; and
4)  Such profit or gain is not exempt from tax under Sec. 54, 54B, 54D, 54EC, 54F, etc.
 
What is a capital asset?
 
“Capital Asset” means property of any kind held by an assessee, whether or not connected with his business or profession of assessee. However, following assets are excluded from the definition of capital asset:
 
  1)  Stock-in-trade:
 
Stock in trade, consumables stores or raw materials held for the purpose of business or profession shall not be regarded as capital asset.
 
  2)  Personal Effects:
 
Personal effects of assessee shall not be regarded as capital asset, if:
a)  Such personal effects is a moveable property;
b)  It is held by assessee for his personal use or for his family member dependent on him;
c)  It should not be:
         i.  Jewellery
         ii.  Paintings
         iii.  Archaeological collections
         iv.  Sculptures
         v.  Drawings
         vi.  Any work of art
 
  3)  Agriculture Land:
 
Agriculture Land situated in India shall not be regarded as capital asset, provided it is not situated:
a)  In any area within the territorial jurisdiction of a municipality or a cantonment board, having a population of 10,000 or more;
b)  Within such distance, not being more than 8 Kms from the local limit of any municipality or cantonment board as the Central Government may specify.
 
The Finance Bill, 2013 has changed the meaning of the term ‘agricultural land’. As per the new provision, a land shall not be treated as ‘agricultural land’ if it is situated in any area within the distance, measured aerially:
a)  not being more than 2 Kms, from the local limits of any municipality or cantonment board and which has a population of more than 10,000 but not exceeding 1,00,000;
b)  not being more than 6 Kms, from the local limits of any municipality or cantonment board and which has a population of more than 1,00,000 but not exceeding 10,00,000; or
c)  not being more than 8 Kms, from the local limits of any municipality or cantonment board and which has a population of more than 10,00,000.
 
  4)  Specified Bonds:
 
Following bonds shall not be regarded as capital asset:
a)  6.5% Gold Bonds, 1977;
b)  7% Gold Bonds, 1980;
c)  National Defence Gold Bonds, 1980;
d)  Special Bearer Bonds;
e)  Gold Deposit Bonds issued under Gold Deposit Scheme, 1999.
  
Finance Act, 2012 has inserted an explanation to the Section 2(14), which defines the term ‘capital assets’, it provides that "property" includes and shall be deemed to have always included any rights in or in relation to an Indian company, including rights of management or control or any other rights whatsoever.
 
Does taxability change with period of holding of capital asset?
 
Taxability of a capital gain would depend on the period of holding of the capital asset. A capital asset is categorised as ‘short-term capital asset’ and ‘long-term capital asset’ based on its period of holding.
 
  1)  Short-term Capital Assets:
 
“Short Term Capital Asset” means a capital asset held by an assessee for not more than 36 Months immediately prior to its date of its transfer. However, following asset shall be treated as short term capital asset if it is held for not more than 12 Months:
a)  Equity or Preference shares;
b)  Any other listed securities like Debentures, Government securities;
c)  Units of UTI or Mutual Fund specified under Sec. 10(23D); and
d)  Zero Coupon Bonds.
 
It must be noted that any capital gain arising on transfer of a depreciable asset shall always be short term capital gain, irrespective of its period of holding before transfer.
 
  2)  Long-term Capital Assets:
 
“Long Term Capital Asset” means a capital asset held by assessee for more than 36 months or 12 months, as the case may be.
 
How to compute Capital Gains?
 
Particulars
Amount
Sales Consideration
Less: Expenditure in connection with transfer
Less: Cost of Acquisition
Less: Cost of Improvement 
Short Term Capital Gain
xxx
(xxx)
(xxx)
(xxx)
 xxx
Sales Consideration
Less: Expenditure in connection with transfer
Less: Indexed Cost of Acquisition
Less: Indexed Cost of Improvement
Long Term Capital Gain
xxx
(xxx)
(xxx)
(xxx)
 xxx
 
What is indexed cost of acquisition?
 
Indexed cost of acquisition =

Cost of acquisition X CII of year of transfer
                              CII of year of acquisition
 
 
 
Screenshot:
 
 
 
 
 

Download In

Excel 2003 format  

add like button Service und Garantie