I have recently sold a flat which I had bought last year. Can I pay short-term capital gains (STCG) tax at 15 per cent on the profits made on the sale instead of adding it to my yearly income? Can I calculate gain after deducting the indexed cost using cost inflation index (CII)?
Answer: The benefit of concessional rate of tax at 15 per cent on STCG is only available for listed equity shares and units of equity-oriented schemes of mutual funds on which securities transaction tax (STT) has been paid. For all other capital assets, the STCG will be treated like your regular income and will be clubbed with your regular income and taxed at the rates applicable on your total income.