Example-Short Term Capital Gain on Property

Last updated at July 31, 2026 by

STCG.png

STCG 1.png

Remove Ads

Transcript

Short Term C apital G ain Format Suppose Property Purchased for 4000000 Construction Cost 1000000 Total Cost 5000000 Sales Price 7000000 Profit 2000000 Suppose Commission Paid to Broker How is Capital Gain Calculated? Full Value of Consideration 7000000 Less Cost of Acquisition 4000000 Cost of Improvement 1000000 Short Term Capital Gain 1900000 Net Profit 1900000 (Assume Short Term) 100000 Expenses of Transfer 100000 Note On this Short Term Capital Gain on Property Normal Capital Gain is Applicable Income 1900000 Tax Net Tax 382500 Cess 4% 15300 Net Tax + Cess 397800 Short Term C apital G ain Format Suppose Property Purchased for 4000000 Construction Cost 1000000 Total Cost 5000000 Sales Price 7000000 Profit 2000000 (Assume Short Term) How is Capital Gain Calculated? Full Value of Consideration 7000000 Less Cost of Acquisition 4000000 Cost of Improvement 1000000 Short Term Capital Gain 2000000 Question

CA Maninder Singh's photo - Co-founder, Teachoo

Made by

CA Maninder Singh

CA Maninder Singh is a Chartered Accountant with 16+ years of practical experience and 20+ years of teaching experience. At Teachoo, he simplifies Accounts, Tax and GST with step-by-step examples so students can apply concepts confidently in exams and real life.

For an uninterrupted learning experience, students can use Teachoo Black to remove ads and focus better.