1. Find out full value of consideration
2. Deduct the following :
1. expenditure incurred wholly and exclusively in connection with such transfer
2. cost of acquisition; and
3. cost of improvement
3. From the resulting sum deduct the exemption provided by sections 54B, 54D, 54G
4. 4. The balancing amount is short-term capital gain

Long Term Capital Gains (LTCG)

Long Term Capital Gains is computed as below :

Computation of long – term Capital Gains

1. Find out full value of consideration
2. Deduct the following :
1. expenditure incurred wholly and exclusively in connection with such transfer
2. indexed cost of acquisition; and
3. indexed cost of improvement
3. From the resulting sum deduct the exemption provided by sections 54, 54B, 54D, 54EC, 54ED, 54F and 54G
4. The balancing amount is long-term capital gain