Capital Gains are taxed in almost the same manner under both Old and New Tax Regimes. The method of computation does not change. What may change is the set off of basic exemption limit and overall tax liability. Special tax rates under Sections 111A, 112A, and 112 apply equally in both regimes.
Below is a clear exam oriented explanation with tables.
Important Point First
Capital gains computation is same under Old and New Regime
Special tax rates remain unchanged
Difference arises mainly due to
Basic exemption limit adjustment
Availability of Chapter VI A deductions for other income
Example Used
Resident Individual below 60 years
No other income
Basic Exemption Limit Rs 2,50,000
Capital Assets Sold
Equity shares sold after 1 year with STT paid
Land sold after long term holding
Example 1:
Long Term Capital Gain under Section 112A
Sale of Equity Shares
| Particulars | Amount Rs |
|---|---|
| Sale Consideration | 6,00,000 |
| Less Cost of Acquisition | 3,50,000 |
| Long Term Capital Gain | 2,50,000 |
Tax Calculation under Section 112A
Exemption up to Rs 1,00,000 allowed
| Particulars | Amount Rs |
|---|---|
| LTCG | 2,50,000 |
| Less Exempt Portion | 1,00,000 |
| Taxable LTCG | 1,50,000 |
Tax Rate 10 percent
| Particulars | Old Regime Rs | New Regime Rs |
|---|---|---|
| Tax 10 percent | 15,000 | 15,000 |
| Add Cess 4 percent | 600 | 600 |
| Tax Payable | 15,600 | 15,600 |
Example 2:
Long Term Capital Gain under Section 112
Sale of Land
| Particulars | Amount Rs |
|---|---|
| Sale Consideration | 10,00,000 |
| Indexed Cost of Acquisition | 6,00,000 |
| LTCG | 4,00,000 |
Tax Calculation under Section 112
Tax Rate 20 percent with indexation
| Particulars | Old Regime Rs | New Regime Rs |
|---|---|---|
| Tax 20 percent | 80,000 | 80,000 |
| Add Cess 4 percent | 3,200 | 3,200 |
| Tax Payable | 83,200 | 83,200 |
Example 3:
Short Term Capital Gain under Section 111A
Sale of Equity Shares within short term period
| Particulars | Amount Rs |
|---|---|
| Sale Value | 3,00,000 |
| Cost of Acquisition | 2,00,000 |
| STCG | 1,00,000 |
Tax Calculation under Section 111A
| Particulars | Old Regime Rs | New Regime Rs |
|---|---|---|
| Tax 15 percent | 15,000 | 15,000 |
| Add Cess 4 percent | 600 | 600 |
| Tax Payable | 15,600 | 15,600 |
Example 4
STCG other than Section 111A
Sale of Gold within short term period
| Particulars | Amount Rs |
|---|---|
| Sale Price | 4,00,000 |
| Cost | 3,00,000 |
| STCG | 1,00,000 |
Tax Calculation
STCG other than 111A
This STCG is taxed at normal slab rates
| Particulars | Old Regime Rs | New Regime Rs |
|---|---|---|
| Taxable STCG | 1,00,000 | 1,00,000 |
| Tax as per slab | Nil | Nil |
| Tax Payable | 0 | 0 |
Reason
Income is within basic exemption limit in both regimes
Summary Comparison Table
| Type of Capital Gain | Tax Rate | Old Regime | New Regime |
|---|---|---|---|
| STCG Section 111A | 15 percent | Same | Same |
| STCG other than 111A | Slab rate | Same | Same |
| LTCG Section 112A | 10 percent above 1 lakh | Same | Same |
| LTCG Section 112 | 20 percent with indexation | Same | Same |
Key Exam Notes:
- Capital gains computation does not change under regimes
- Special tax rates apply equally
- Section 80 deductions not allowed from capital gains
- Basic exemption limit adjustment allowed to resident individuals
- Cess and surcharge applicable in both regimes