Q: How would the tax be collected in LTCG and STCG ?

 Ans:  When any property is sold, the income tax is levied on the property on the basis of short term capital gain or long term capital gain.  If the property is sold within 2 years of purchase of property,  the gain will be short term capital gain and when the property is sold after 2 years of purchase of property,  the gain will be long term capital gain. The long term capital gain tax is fixed i.e 20 percent and the indexation benefit will be achieved on long term capital gain tax.

In short term capital gain tax , the tax will be levied according to slab rate whether it is 20 percent slab rate or 30 percent slab rate and indexation benefit is not given on short term capital gain tax. 

How the tax is Calculated in long term capital gain tax? 

Suppose the purchase price of flat was Rs 5 lakhs and after indexation with inflation rate, the calculated price is Rs 8 lakhs and a person sells that flat in Rs 11 lakhs. Then, the capital gain will be 11- 8 i.e Rs 3 lakhs and the tax will be imposed on Rs 3 lakhs.

If there is capital loss after indexation , no tax will be levied on that capital loss. 






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