Good Morning, Good Evening, Good Afternoon to everyone who
is watching me on YouTube.
How are you all?
How are you doing at home?
Are you having fun?
Good.
It should always be like this.
Sir, in the last topic we discussed that if we have
short-term capital gains, then how do we apply tax on
short-term capital gains?
We divided it into two categories.
One is the share market and the other is others.
The share market is 15% and the rest is at the normal rate.
Today we are going to discuss how to apply tax on our
long-term capital gains.
We will discuss how to apply tax on long-term capital gains.
Sir, are there two categories in this also?
Yes, absolutely.
There are two categories in this also.
One is the share market and the other is others.
How to do it? What to do?
First, understand how we used to calculate long-term
capital gains.
Because I feel that you all are not revising.
First, look at the sale that came out.
Out of that, the small expenses that you did, like if you
sell a property, then the commission that you will give to
the broker, minus that.
What will you get? Net.
Net sales.
What will you minus from this? Tell me correctly.
If someone says cost of acquisition, then slap yourself on
my behalf.
Sir, will there be cost of acquisition?
Or will there be indexed cost of acquisition?
Think about it and tell me.
I am talking about long-term.
So, should there be indexed cost or simple cost of
acquisition?
Indexed cost of acquisition.
What will come below? Indexed cost of improvement.
And what will come after this?
Minus this from this.
Minus this.
What will come after this?
This will come after this.
Either long-term capital gain or long-term capital loss.
In the case of long-term, we always do indexation.
What was indexation?
If I buy that property in today's date, if I buy that
capital asset in today's date, then how much will I get?
Okay? Is it clear so far?
Nothing new has been taught so far.
This is only what you have read in the old lectures.
A revision of that has been done.
Come, let's go to the next.
What is to be done further?
I am saying that the long-term capital gain or long-term
capital loss, we don't do anything about the loss.
We don't impose tax on the loss.
We don't impose.
This is a set-off.
Let's minus it from some other income.
We will discuss that further.
My long-term capital gain, is taxed on it by a specified
percentage.
It is a tax rate.
Tax is imposed on it by a tax rate.
Then I get to know what is the income tax on it.
This is basically the rate of income tax.
It is the rate of income tax.
On whom?
On the long-term capital gain.
What is that rate?
We will discuss that now, my dear.
Come, let's go.
There are two categories of this.
There are only two categories.
One is the share market one and the other is the normal one.
In the long-term capital gain, one is the share market one.
The share market one.
If you say it in the language of literate people, 112A is
the name of this section.
112A.
And the other one is the others.
Okay? The share market one means, first tell me, the listed
equity shares, of any company, if there is a listed company
on the stock exchange, you have bought its shares.
First tell me, how long will the long-term and short-term
be after?
If I want to check the long-term, if I buy some shares in a
share market, when will the long-term be?
If I hold it for a year, what will I get?
Long-term capital asset.
What is this?
Shares.
Of any company.
If I hold it for a year, what will I get?
Long-term capital asset.
And it's not just shares.
I have listed shares in this.
After this, there is an equity-oriented fund.
I have units of some mutual fund.
The equity-oriented mutual fund.
You must have heard the term, mutual fund.
The equity component of that, if they are equity shares,
equity-oriented mutual fund, then it will come here.
Or business trust.
It is running the same as we were discussing in short-term
capital gain.
It is running exactly the same.
Sir, in this case, what is their rate?
What is their rate in this case?
In this case, the rate is 10%.
Only 10% rate.
But when?
If it goes above 1 lakh, exceeding 1 lakh.
Suppose, your long-term capital gain was 1,50,000 rupees.
How did it happen?
Today, you buy shares of Reliance Company.
Do you remember,
I had told you a few lectures ago, that I had a student who
was telling me,
Sir, I am very impressed with your personality.
And I gift you 5,000 shares of Reliance Company.
I had not taken that, that is a different thing.
5,000 shares, for example,
I would have taken it today, and after two years, I would
have sold it.
Today, suppose its price is 2,500 rupees.
Its value will be 1.25 crores.
If I talk about it, its value will be 1.25 crores,
according to today.
1.25 crores.
Okay.
I bought it today.
I held it for long-term, that when I will need money, then
I will sell it.
Daily, this up and down of shares,
I am not going to do this daily work.
Because I don't have that much time, that I can open the
whole system and check, that where is it today, where is it
tomorrow.
I have held it.
After 2-3-4 years, whenever I will need it, then I will
sell it.
Suppose, this share of 1.25 crores, its value did not
increase much.
And this 1.30 crores,
I sold it after 2-3 years.
Suppose, I sold it after 3 years.
First tell me, did I hold it for more than 1 year?
Answer is yes.
Because I held it for more than 1 year, did I get a
long-term capital asset?
Answer is yes.
Now, when I get a long-term capital asset, what will I do?
I will get a long-term capital gain.
In this, this indexed, there will be a point of indexation.
Suppose, I got Rs.
5 lakhs.
Consider it as a symbol.
I got Rs. 5 lakhs as capital gain.
Now, what does the government say?
There is a long-term capital gain and there is a capital
gain in the share market.
What you have to do?
If there is a capital gain up to Rs.
1 lakh, then don't give anything.
There is a capital gain up to Rs. 1 lakh.
It is long-term, it is in the share market.
There is a capital gain up to Rs.
1 lakh, don't give anything.
Yes, but if you go above Rs.
1 lakh, then how much will you give?
There is a small rate of 10%.
Give that.
Let me tell you, the government is charging a very low rate
of 10%.
Why is it charging?
Because in this case also, the government is saying that
you people put money in the share market.
It is encouraging the government to put money in the share
market.
But, not to sell and buy daily.
Put money for long-term investment.
Sir, why?
I have a personal experience.
I also do share market.
My personal experience says that if you put money in a good
quality share, according to the long-term, then you get a
very good profit.
But, if you do intraday trading daily, you don't get much
benefit.
Ultimately, you burn your hands.
Yes, but if you buy a good company's share today, hold it
for 2-3 years, you will get a good profit.
So, in this case, the government motivates you to do
long-term investments.
Investments, from the retail sector, like you, from the
retail participants, investments come.
So, this is the growth of the economy.
This is the growth of India.
Money is coming out of people's houses and coming to
companies.
It is coming to the stock market.
The country will develop.
Brokerage, because brokerage also goes in this case.
Brokers' shops will also run.
Ultimately, the GDP of the country increases because of
this.
So, because of this, the government encourages people to do
long-term investments.
You will get a profit of up to Rs 1 lakh if you have a
long-term capital gain.
In the share market, there is no tax.
If you go above Rs 1 lakh, then you will get a 10% tax rate.
This is the point, sir.
This is the point.
Sir, do we have to see that in this also?
Do we have to check that in this also?
The 2.5 lakh exemption limit job you were talking about.
I asked, what was I telling you?
I don't remember.
What did I tell you?
Sir, you were telling me that there is a 2.5 lakh exemption
limit.
And let's say, there is some other source of income.
That was up to Rs 2 lakh.
I said, what are you saying?
He said, there is an exemption limit of Rs 2.5 lakh.
Okay.
And your other income, from other sources, this was for
example of Rs 2 lakh.
Okay.
Take this.
And this long-term capital gain, in this case, how much
should I tell you?
Let me tell you,
Rs 1,05,000.
Okay.
Because up to Rs 1,00,000 is exempt.
Will we get this advantage in this case also?
Because earlier what we used to do, we used to see this as
a symbol that the rate of this tax is different and the
rate of this tax is different.
And we had separated this thing.
We had separated this thing and said that there is an
income of 2 lakhs.
This comes under the exemption limit.
Don't pay any tax on this.
And on this, quietly go and deposit 10%.
But the same problem.
That person will say, tell me one thing.
By the way, the government says that you can earn 2.5 lakhs
in a year.
You don't have to pay any tax.
But here, why are you acting like a fool?
I have earned up to 2 lakhs.
On this, it is clear that you have not taken tax from me.
But if I have earned 1.5 lakhs, then in that case, you are
taking a tax of 1.5 lakhs from me.
Whereas legally, I still have a limit of 50,000.
Shouldn't you take a tax of 50,000?
And after that, the balance that is left in the long-term
capital, you take a tax on that.
I am saying this legally.
This brother still has a limit of 50,000.
He can adjust another income up to 50,000.
So why won't he adjust his income?
The government said that this is a genuine case.
We understand this.
Our objective is not to trouble the taxpayers.
We are also soft-hearted people.
Nirmala Sita Raman is my name.
Nirmala, Nirmal is my heart.
Ram and Sita both came in my name.
After that, what do you think, that we are here to fight
with a hunter?
We also understand that this is a genuine case.
So what should you do in this case?
In this case, you adjust your balance as much as you can.
This balance was of 50,000.
You do one thing.
Minus 50,000 out of 1,05,000.
As much balance as you can.
Which balance?
The balance of the exemption limit and other income.
Minus this difference.
You will get a long-term capital of Rs. 50,000.
Fill 10% on this, not on this.
People don't know these things.
Does this happen?
You sold a share today.
It has become a long-term capital gain.
You are directly adding 10% of it.
Don't do this directly.
First, see if your exemption limit is still there.
What if your exemption limit is still there?
And tell me one thing in this too.
Why would I do this? 1,05,000.
1,00,000 is already my exemption.
1,00,000 is already nothing.
How much is left?
Rs. 5,000.
Rs. 5,000 is already my exemption.
People don't know this.
Suppose you have a long-term capital of Rs. 5,00,000.
You don't have to give anything till Rs. 1,00,000.
People don't even minus that.
They go and deposit everything.
You are causing a loss to yourself.
You are not minusing Rs. 1,00,000.
What is the loss due to that?
According to 10%, you are incurring a loss of Rs. 10,000.
Suppose you deposit Rs. 400 on it.
Rs. 10,000.
You are incurring a loss of Rs. 400.
Only because you didn't pay attention to our class.
If you hadn't messaged your girlfriend today and understood
this concept, you would have saved Rs.
This is the point.
Do you understand the point?
Which section is this?
What am I saying?
What have I said so far?
Sir, what are you saying?
I am not able to understand anything.
What are you trying to say?
I am trying to say that
Section 112A says that if you have gained any long-term
capital from the share market and it is above Rs.
1,00,000, then you are incurring a tax of 10% on the person
above Rs.
This is the first point.
The second point is that if you have any other income below
the exemption limit, then look at the difference.
Minus that difference from your long-term capital gain.
After that, pay the tax.
Be a little smart.
Otherwise, you will incur a loss.
This is the point.
Is it clear? Sir, will you do the reading?
I will do the reading.
I have left a few points in this.
I will cover them when I do the reading.
These are similar points.
So, there is no point in telling them separately.
When I do the reading in the next lecture,
I will cover all the points together.
I hope this lecture was clear to you.
Was the point clear, friends?
We will meet in the next lecture.
Thank you.