Nexgenca

Office Address

1-10-74/71 VV Inspire,S.P., Road, Above Wood Lands, Begumpet, Hyderabad, Secunderabad, Telangana, India-500016

Phone Number

9493908042

Email Address

nexgencatechnologies@gmail.com

support@nexgenca.com

Capital Gains Planning

Capital Gains Planning

 

Selling a property, shares, or other investments can bring in significant profits – but it also attracts Capital Gains Tax under the Income Tax Act, 1961. With the right Capital Gain Planning, you can legally minimize taxes, maximize your returns, and stay fully compliant.

At NEXGENCA, we specialize in offering strategic capital gains tax planning and advisory services tailored to your financial goals.

What is Capital Gain?

Capital Gain is the profit earned when you sell a capital asset at a price higher than its purchase cost. It is divided into:

Short-Term Capital Gain (STCG):

  • Asset held for a short period (e.g., less than 24 months for property, less than 12 months for listed shares).

  • Taxed at regular slab rates (or special rate in case of listed shares/equity mutual funds at 15%).

Long-Term Capital Gain (LTCG):

  • Asset held for a longer period (e.g., more than 24 months for property, more than 12 months for listed shares).

  • Taxed at concessional rates (10% or 20% with indexation, depending on the asset).

NEXGENCA’s Capital Gain Planning Services

1. Strategic Capital Gain Tax Advisory

  • Assessing your asset portfolio (real estate, shares, bonds, mutual funds, gold, business assets).

  • Advising on the best time to sell assets for tax efficiency.

  • Identifying tax exemptions and deductions available.

2. Exemption & Investment Planning

Guidance on availing tax exemptions under key sections:

  • Section 54: Reinvestment of residential property sale proceeds in another house.

  • Section 54EC: Investment in specified bonds (NHAI, REC, etc.) within 6 months.

  • Section 54F: For sale of non-residential assets if reinvested in residential property.

  • Section 54B: For sale of agricultural land and reinvestment into agricultural land.

3. Capital Gains on Shares & Securities

  • Planning to utilize STT-paid exemptions and LTCG threshold (₹1 lakh tax-free limit on equity).

  • Tax harvesting techniques to optimize gains and losses.

  • Advisory for NRIs investing in Indian equities.

4. Real Estate Capital Gain Planning

  • Structuring sale of property for minimum tax liability.

  • Guidance on joint ownership sales, family transfers, and reinvestments.

  • Advisory on capital gains exemption accounts scheme (CGEAS) to defer tax.

5. Business Capital Gain Planning

  • Advisory for sale of business undertakings or shares in a company.

  • Structuring M&A transactions for tax efficiency.

  • Planning for slump sale vs. itemized sale taxation.

6. NRI Capital Gain Advisory

  • Double Tax Avoidance Agreement (DTAA) benefits.

  • Guidance on TDS on property sales by NRIs.

  • Repatriation planning of sale proceeds abroad.

Key Due Dates

  • Income Tax Return (ITR) Filing:

    • For Individuals/Non-audit cases – 31st July.

    • For Companies/Audit cases – 31st October.

  • Advance Tax Payments: Pay tax on capital gains in the quarter in which gains are realized.

  • Investment Deadlines:

    • For Sec 54/54F – within 2 years (purchase) or 3 years (construction).

    • For Sec 54EC – within 6 months of sale.

Penalties for Non-Compliance

  • Interest under sections 234B & 234C for not paying advance tax.

  • Interest and penalty for late ITR filing.

  • Loss of exemptions if reinvestment conditions are not met.

Documents Required

  • Sale deed/transfer agreement.

  • Purchase deed/records of the asset.

  • Improvement/renovation cost bills.

  • Brokerage and legal expense receipts.

  • Investment proofs for exemptions (bonds, property, etc.).

Benefits of NEXGENCA’s Capital Gain Planning

  • Tax savings through smart exemption planning.

  • Customized strategies for property, shares, or business sales.

  • NRI-focused solutions for cross-border transactions.

  • Complete compliance with Income Tax Act.

  • Hassle-free documentation and filing.

Why Choose NEXGENCA?

  • Expertise in real estate, equity, and NRI transactions.

  • Personalized tax-saving strategies.

  • Compliance-driven approach to avoid notices and disputes.

  • Timely execution of reinvestment and filings.

  • Trusted partner for individuals, investors, and corporates.

Yes, by reinvesting in residential property (Sec 54) or specified bonds (Sec 54EC).

No, it is available on long-term gains from most assets except equity shares/mutual funds taxed at 10%.

Yes, short-term losses can be set off against both STCG & LTCG, while long-term losses can be adjusted only against LTCG.

Yes, NRIs can also claim exemption by reinvesting in property in India.

We provide end-to-end advisory – from calculating gains, identifying exemptions, preparing reinvestment strategies, to filing ITR.