How to Add Delete Capital Gain in Software

Income Tax || Data Feeding - Capital Gain

What is Capital Gains Tax in India:
Capital Gains Tax is a tax on the profit or gain that an individual or a business entity earns from the sale of capital assets. The capital assets can include property, stocks, bonds, gold, or any other asset. The tax is applicable on the gains arising from the transfer of such assets.
Types of Capital Gains:

  1. Short-Term Capital Gains (STCG)

    • Definition: Gains from the sale of a capital asset held for a short duration.
    • Holding Period:
      • Listed Equity Shares, Equity-oriented Mutual Funds, and Units of Business Trust: Less than 12 months.
      • Unlisted Shares and Immovable Property: Less than 24 months.
      • Other Assets: Less than 36 months.
    • Tax Rate: Generally, STCG is taxed at the applicable income tax slab rate of the taxpayer. However, STCG on the sale of listed equity shares and equity-oriented mutual funds is taxed at 15% (under Section 111A).

  2. Long-Term Capital Gains (LTCG)

    • Definition: Gains from the sale of a capital asset held for a longer duration.
    • Holding Period:
      • Listed Equity Shares, Equity-oriented Mutual Funds, and Units of Business Trust: More than 12 months.
      • Unlisted Shares and Immovable Property: More than 24 months.
      • Other Assets: More than 36 months.
    • Tax Rate: LTCG exceeding Rs. 1 lakh from the sale of listed equity shares and equity-oriented mutual funds is taxed at 10% without the benefit of indexation (under Section 112A). For other assets, LTCG is taxed at 20% with the benefit of indexation.

Calculation of Capital Gains

  1. Short-Term Capital Gains (STCG)

    • Formula: STCG = Sale Consideration - (Cost of Acquisition + Cost of Improvement + Cost of Transfer)
    • No indexation benefit is available for STCG.

  2. Long-Term Capital Gains (LTCG)

    • Formula: LTCG = Sale Consideration - (Indexed Cost of Acquisition + Indexed Cost of Improvement + Cost of Transfer)
    • Indexed Cost: The cost of acquisition and improvement is adjusted for inflation using the Cost Inflation Index (CII) provided by the Income Tax Department.

Exemptions and Deductions

  1. Section 54: Exemption on LTCG from the sale of a residential house if the gains are reinvested in another residential house.
  2. Section 54EC: Exemption on LTCG if the gains are reinvested in specified bonds issued by NHAI or REC within six months of the sale.
  3. Section 54F: Exemption on LTCG from the sale of any asset other than a residential house, provided the entire sale consideration is invested in a residential house.
How to Import the Capital Gain Through Excel Template:
To Import Capital Gain From Excel Template: Click Here to Import

Process to Feed Capital Gain Data in Software:
Step 1:
Open the ZenIT Software >> Go to Transaction >> Capital Gain:


Step 2:
1. Shares/Equity Oriented Mutual Fund:
(i) For Long Term: 
      (1-2) If You Want to Feed Shares/ Equity Oriented Mutual Fund Under Section 112A: Check MARK On STT Paid on Sales and STT Paid on Purchase.
      (3-4) If You Want to Feed Shares/ Equity Oriented Mutual Fund Under Section 112: After Remove Check marks on STT Paid on Sales and Purchase then Select the Listed And Unlisted Shares type.

(ii) For Short Term:
      (1-2) If You Want to Feed Shares/Equity Oriented Mutual Fund Under Section 111A: Check MARK On STT Paid on Sales 
      (3-4) If You Want to Feed Shares/Equity Oriented Mutual Fund Under Section 111: After Remove Check marks on STT Paid on Sales then Select the Listed And Unlisted Shares type.



3. Bonds & Debentures:
Under the field, both Short Term Capital Gains (STCG) and Long Term Capital Gains (LTCG) on the sale of debentures apply, with a holding period of 36 months.

4. Listed Securities STT Not Paid:
LTCG taxable as per the proviso of section 112 requires a 12-month holding period.
5. Deemed CG:
Deemed Capital Gain, in simple words, means the capital gain exempted earlier due to certain conditions mentioned in relevant provisions is now charged to tax due to a breach of those relevant conditions based on which exemption on capital gain was granted. It is taxable at 20% in India.
6. Land/Building:
Here are the three types of capital gains on the sale of assets:
1. Residential House: 
STCG and LTCG on the sale of a residential house or building require a holding period of 36 months.
Step 1: Fill the Sale Considration As per Registrar.
Step 2: Fill the Sales Consideration From Buyer.
Step 3: Fill the Purchase Consideration/FMV.
Step 4: Buyer Details >> Enter here the Buyers Details.
The above Four steps are mandatory to fill for the calculation of gain/loss on the sale of a residential house.
Step 5: Improvement: If there is an improvement made during the holding period, enter the value. The software will then calculate the amount based on the indexed cost. 
Step 6: Calculation of Indexed Cost: (Cost Inflation Index for the Year of Sale / Cost Inflation Index for the Year of Acquisition) x Purchase Consideration (Cost).
Example:       Cost Inflation Index for the Year of Sale = 348.
                        Cost Inflation Index in the year of acquisition = 280.
                  So, 348/280*1,00,000 = 1,24,286.

Step 7: Here Your Gain/Loss Is Coming After Sale -Purchase Cost/ Indexed Cost.
Step 8: If you have Capital Gains only, then fill out the Exemption under section 54.
             Click Here to Fill Exemption u/s 54.


2. Urban Agriculture Land:
STCG and LTCG on sale of Urban Agriculture Land >> 36 Months Holding Period.
3. Land/ Building / Any Right in Land or Building:
STCG and LTCG on sale of Land >> 36 Months Holding Period


7. Other/ VDA:
Here are the Four types of capital gains on the sale of Other/VDA:

1. Any Capital Assets.
If you have units of Debt-Oriented Mutual Funds, then fill them in under Any Capital Assets, which have a holding period of 36 months.
2. Depreciable Assets
Click Here to Fill the Depreciable assets and Rectify Error at the Time Of Generating Computation.
3. Slump Sale
STCG and LTCG on the sale of a slump sale have a holding period of 36 months.
4. Schedule VDA


To delete capital gain data in bulk, follow these steps:
Step 1:
Click on Print Statement CG:


Step 2:
To delete the Capital Gain/loss Entries Follow the Steps:
1. Inverse: To select all entries, click on "Inverse".
2. After clicking on "Inverse", press the "Delete" button.


Hope This Helps.

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