Understanding LTCG Grandfathered for Indian Taxpayers

Asset Vantage10 Apr, 2023Business

LTCG Grandfathered (Capital Gain Report) is a provision in the Indian tax laws for the grandfathering of long-term capital gains. made until a certain date. Specifically, for equity shares and equity-oriented mutual funds, any gains made until 31st January 2018 are grandfathered. This means that any gains made until this date will be exempt from the new tax law . To take advantage of grandfathering, taxpayers need to calculate their long-term capital gains using the fair market value (FMV) of the assets. This means that the cost of acquisition will be the higher of the actual purchase price or the FMV on 31st January 2018. The Capital Gain Report is a form provided by the tax department that taxpayers need to fill in to report their LTCG and avail the benefit of grandfathering.