Question

How do tax applies on Capital asset

Answer 1

. Immovable Property (Real Estate)

For Filers: If the property was bought after July 1, 2024, you pay a flat 15% tax on the profit, regardless of how long you kept it. For properties bought before that date, the tax rate decreases annually and becomes 0% after 6 years (plots), 4 years (houses), or 2 years (flats).

For Non-Filers: You are taxed at aggressive progressive rates (up to 45%) based on your total income.

2. Securities (Stocks & Mutual Funds)

Filers: A flat 15% tax applies to gains on shares acquired after July 1, 2024.

Non-Filers: Taxed at normal income tax slab rates (up to 45%).

3. Key Takeaways

Profit-Based: You only pay tax on the gain (Sale Price minus Purchase Price), not the total sale value.

Advance Tax: You must pay a separate withholding tax (usually 3% for filers and up to 15% for non-filers) at the time of the transfer, which can be adjusted when you file your annual return.

Late Filers: People who file their returns after the official deadline may be treated similarly to non-filers and charged higher rates