Separate block of income
Some gains are taxed at their own rate. They are kept separate from slab income, but the tax is still worked out and paid through your return.
Where it applies
- Capital gains on immovable property (s.37, Div VIII)
- Capital gains on securities (s.37A, Div VII; collected by NCCPL under the Eighth Schedule)
- Flying and submarine allowances, taxed at 2.5% (Second Schedule Part II clause 1)
How it works, step by step
The section of law behind each step is shown beside it.
- 1Work out the gains.37(2), s.37A
Sale price less cost and allowable expenses.
- 2Check the holding period and acquisition dateDiv VII, VIII
Property and securities acquired from 1 July 2024 are taxed at a flat 15% for ATL persons; earlier acquisitions use taper tables.
- 3Tax at the specified rates.37(1A), s.37A
The rate is applied to the gain alone. It is not added to slab income.
- 4Adjust advance taxs.236C, s.100B
Advance tax on sale (s.236C) is adjusted against the CGT. NCCPL computes and collects CGT on listed securities.
Rates and rules
| Case | Rate / rule | Law |
|---|---|---|
| Property acquired from 1 July 2024, ATL | 15% flat on the gain | Div VIII |
| Property acquired from 1 July 2024, non-ATL | Division I slab rates, minimum 15% | Div VIII |
| Property acquired before July 2024 | Taper by holding period (nil after 6 years for most cases) | Div VIII |
| Securities acquired from 1 July 2024, ATL | 15% | Div VII |
| Securities acquired 2013–2022 / before 2013 | 12.5% / 0% | Div VII |
Worked example
A plot bought in August 2024 for Rs 10 million and sold in 2026 for Rs 14 million: the gain of Rs 4 million is taxed at 15%, which is Rs 600,000. Advance tax paid under s.236C is adjusted against it.
Points to watch
- Capital losses can only be set off against capital gains of the same kind.
- Precious assets (gold, jewellery, works of art, antiques, coins, stamps, rare books) are not a separate block: their gain is added to taxable income at slab rates, and a loss on them is never allowed (s.38(5)).
- Use the Capital gains and Property calculators for exact tables.