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Tax exemption on earnings of 1 lakh will not be available from tomorrow, today is the last chance, the government announced

Long-term capital gains attract a flat tax of 10 per cent. However, up to 1 lakh in a financial year, long-term capital gains are tax free. After 12 months, Capital Gain comes under LTCG.

After more than 2 months, long-term capital gains are incurred, which is 10 per cent.

Finance Minister Nirmala Sitharaman had announced not to increase tax on capital gains while giving relief to taxpayers in Budget 2021. Before presenting the budget on February 1, it was expected that the government would increase the capital gains tax. Today is the last day of the financial year 2020-21 and is the last chance to get tax exemption of up to 1 lakh on long term capital gains.

If you invest in the stock market or security market, then the deadline of 31 March is very important for you. If you invest in these places, then you have to pay capital gains tax on redeeming the investment. Redeeming investment before 12 months attracts short-term capital gains tax, which is 15 per cent. At the same time, after more than 12 months, long term capital gains are incurred, which is 10 per cent. However, long term capital gains are tax free up to 1 lakh.

Save tax smartly

Tax Consultant CMA Mukesh Kumar Jha Says that in the current financial year 2020-21, up to one lakh long term capital gains are tax free. If there is more gain than this, 10 percent tax will be levied. His advice is that investors should save tax smartly. If you have not yet done capital gains in the current financial year (2020-21), today is the last chance. Capital can be made by selling the shares held for years. Sell ​​as many shares from you so that the capital gains fall below 1 lakh, this will save you from paying tax.

New fiscal year starts from April 1

He said that the financial year 2021-22 is beginning from April 1. If this benefit is raised on Thursday i.e. tomorrow then it will count in the new financial year. You will also get tax relief on capital gains up to 1 lakh in the new financial year. Talking about the stock market, it has lost more than 90 percent since March 2020. Investors’ perception is definitely affected in Corona cases are increasing. In such a situation, it is the right time that by earning good profits on your investment, you can get out of the risk of the market.

Also read, your take home salary will not increase from tomorrow, the government postponed the decision just a day before the new rule is implemented

Also read, Cairn Energy case: Government may increase dispute settlement by cairn, deadline of trust scheme by dispute, last date today

Bhagyashree Soni
Bhagyashree Soni is a software engineer with soft writing skills. She is a degree holder from the International School of Entrepreneurial Leadership. She has been a state-level badminton champion and chess player. A woman with a forthright attitude enjoys her writing passion as her chosen career. Writing in the context of feminism, social-cause and entreprenurship is her forte.

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