Understanding Capital Gains

Capital gains arise when there is a profit from the sale of a capital asset. These gains are categorized into:​

• Short-Term Capital Gains (STCG): Profits from the sale of assets held for a short duration (typically less than 36 months for real estate and less than 12 months for listed securities).​

• Long-Term Capital Gains (LTCG): Profits from the sale of assets held for a longer duration (more than 36 months for real estate and more than 12 months for listed securities).​

The tax rates and exemptions applicable to STCG and LTCG vary, and understanding these distinctions is crucial for effective tax planning.​

Our Capital Gain Advisory Services

At S. R. Mahajan & Co., we offer a suite of services to assist clients in navigating the complexities of capital gains taxation:

1. Asset Classification and Holding Period Analysis:

   • Determining the nature of the asset and its holding period to classify gains accurately.​

2. Tax Computation and Compliance:

   • Calculating capital gains tax liabilities in accordance with the latest tax laws.​

   • Ensuring timely and accurate filing of tax returns.​

3. Exemption and Deduction Planning:

   • Advising on available exemptions under Sections 54, 54EC, 54F, etc., to minimize tax liabilities.​

   • Strategizing investments in specified instruments to avail deductions.​

4. Investment and Reinvestment Strategies:

   • Guiding clients on reinvestment options to defer or eliminate capital gains tax.​

   • Assisting in selecting suitable investment avenues aligned with financial goals.​

5. Documentation and Record-Keeping:

   • Maintaining comprehensive records of transactions to substantiate tax positions.​

   • Preparing necessary documentation for audits and assessments.​

6. Representation and Litigation Support:

   • Representing clients before tax authorities in case of disputes or assessments.​

   • Providing expert opinions and support in litigation matters related to capital gains.​

Why Choose S. R. Mahajan & Co.?

• Expertise: Led by CA Saket Mahajan, our team possesses in-depth knowledge of capital gains taxation and stays abreast of the latest regulatory changes.​

• Customized Solutions: We understand that each client’s financial situation is unique, and we tailor our services to meet specific requirements.​

• Compliance Assurance: Our meticulous approach ensures full compliance with tax laws, reducing the risk of penalties and legal issues.​

• Strategic Planning: We not only focus on compliance but also on strategic planning to optimize tax outcomes and support long-term financial objectives.​