Capital Gains Tax Advisory in Bangalore

Capital Gains Tax Advisory in Bangalore

When it comes to capital gains tax in Bangalore, it's essential to be aware of the tax implications and consider strategies to optimize your financial position. In Bangalore, our advisors can consider your exposure to capital gains tax on the profits on the sale of buy to let houses, second homes, commercial property, businesses, shares and any other investments or assets.

Capital gains refer to the profits earned from the sale of a capital asset, such as real estate or stocks. In the context of Bangalore, India, if you sell a property or other capital assets located in Bangalore and make a profit, you may be subject to capital gains tax.


Types of Capital Gain:​

Long-Term Capital Gains (LTCG):

  • Assets: If you sell assets like stocks, mutual funds, immovable property or any other capital assets, any profit is considered long-term capital gains, If the property is held for 24 months or more (specified by Income Tax act), the gains are considered long-term. Such benefits are available in case of long term capital gain;

  • Indexation Benefit:

    • Indexation is a method to adjust the purchase price of an asset for inflation, which can reduce the taxable capital gains. It is generally applicable to long-term capital gains on non-equity assets like real estate and debt mutual funds.

  • Exemptions:

    • Certain investments, such as investments in specified government securities, some bonds, and small savings schemes, may qualify for exemptions under Section 54EC.


Short-Term Capital Gains (STCG): If the property is held for less than 24 months or less (specified by Income Tax Act), any profit from the sale is considered short-term capital gains. Short-term capital gains are added to your regular income and taxed at your applicable income tax slab rate.


Where appropriate, our advice will seek to ensure:

• All available deductions in Bangalore are made when calculating your gain;
• You are made aware of all tax deferral opportunities e.g. Enterprise Investment Scheme and similar opportunities in Bangalore;
• In Bangalore, All planning opportunities to maximize Business Asset Disposal Relief and Investors Relief are considered.
• Assets are valued appropriately for CGT purposes e.g. shares in a private company or transactions with connected persons;
• Holdover relief is claimed for gifts of certain assets
• Rollover relief is claimed for the replacement of business assets;
• Relief is claimed for assets of negligible value in Bangalore;
• Relief is claimed for losses on disposals of assets and on certain loans in Bangalore;
• In Bangalore, main residence relief and lettings relief are claimed as appropriate following the disposal of your principal private residence.

How to save capital gain tax on sale of residential property in Bangalore:

Before striving to understand capital gain, let us be very clear about the taxes in Bangalore that will be levied on such gains. You will have to pay 20% of the sale amount in the assessment year. 

This and more information and great practical methods to save capital gain tax received from the sale of residential properties has been obtained from a pioneer company specialized in capital gain tax.


Are Sales of All Residential Properties in Bangalore Counted Towards Capital Gain Tax?

The seller has to pay tax only on those properties (located in Bangalore) which he or she was in possession for more that 24 calendar months or period specified by Income Tax act. 

A Common Practice Employed to Save Capital Gain Tax

Section 54 and 54F of the income tax act details out a way to claim exemption. The person who gained from the sale of the residential property  located in Bangalore should invest the amount in another residential property. The invested amount will be exempt from capital gain tax. 

The hardest part of assessing yourself for the financial year and the subsequent filing is the labyrinth of rules and regulations. A seasoned capital gains accounting company will do the e-filing on your behalf without the usual hassles. The easiest part is that you do not even have to visit their offices. Your personal tax advisor is just a click or a phone call away.


Created & Posted by (Himanshu Shakya)
Accountant at TAXAJ

TAXAJ is a consortium of CA, CS, Advocates & Professionals from specific fields to provide you a One Stop Solution for all your Business, Financial, Taxation & Legal Matters under One Roof. Some of them are: Launch Your Start-Up Company/Business, Trademark & Brand Registration, Digital Marketing, E-Stamp Paper Online, Closure of Business, Legal Services, Payroll Services, etc. For any further queries related to this or anything else visit TAXAJ

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