Long term capital gain in case of assets other than securities is applicable where holding period of asset is more than 3 years and in case of securities the period is one year.
Long Term Capital Gains is computed as below :
LTCG = Full value of consideration received or accruing – (indexed cost of acquisition + indexed cost of
improvement + cost of transfer)
Where, Indexed cost of acquisition =Cost of acquisition x CII of year of transfer /CII of year of acquisition
CII = Cost Inflation Index (Please see chart given below)
Tax liability on LTCG to be taken at 20%.
If total income other than LTCG is less than zero slab,LTCG over the zero slab only attracts tax at 20%.
Attached is the Cost Inflation Index