| I am a senior citizen. I have booked profit by selling shares during the current financial year, which were bought two years back. After adding the profit amount, my total income is well within the exempted limit of Rs 1,85,000. Do I have to pay capital gains tax separately? |
J. P. Shethia, by e-mail |
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| ce you bought the shares two years back, it means that you made long-term capital gains, which is exempted from tax. Therefore, you will not have to pay any tax on the profit amount. |
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| Short, not sweet |
| What is the rate of tax for short-term capital gains on mutual fund units and equity shares? Are they added to my salary income or do I have to pay tax on it separately? |
Animesh Chakravorty, Calcutta |
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| You have to add the short-term capital gains on mutual fund units and equity shares to your total income. The taxation is not at the marginal rates, but at the flat rate of 10 per cent. |
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| On different terms |
| I have taken a term insurance plan along with accidental death benefit rider. I also have a comprehensive motor car insurance. In case of accidental death, shall my nominee have any problem in getting the benefit amount from both the companies? |
J. Paul, by e-mail |
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| ce the nature of the policies are different, one being a life insurance and the other being a general insurance policy, there will be no problem in getting the benefit amount from both the companies. |
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| Home truth |
| I incurred long-term capital gains on selling a house. What is the time limit within which I have to purchase another house to save capital gains tax? |
Gautam Mazumdar, Jamshedpur |
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| You can claim exemption if you had acquired a house one year before the date of sale. Post-sale, the time limit is two years, in case you purchase a house, or three years if you construct a house. You can also invest the amount in capital gains bonds. |
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| If you have any queries about investing or taxes or a high-cost purchase you are planning, mail to: btgraph@abpmail.com, or write to: Business Telegraph, 6 Prafulla Sarkar Street, Calcutta 700 001. |
