How to calculate capital gains tax in USA?
1 Answer(s)
Satya
Hi,
The taxation rules in India and in the USA are different. The above formula applies only in India. In the U.S. you have different rates for Capital Gain taxation.
So, if you want to calculate LTCG tax in the above question, it will be done as below:
Indexed cost of purchase = 5000000*785/426
= 9213615
Selling price = 16500000
LTCG = 16500000-9213615 = 7286385
LTCG tax = 20.3% of 7286385 = 1479136
Jan 18 2013 02:05 AM
The taxation rules in India and in the USA are different. The above formula applies only in India. In the U.S. you have different rates for Capital Gain taxation.
So, if you want to calculate LTCG tax in the above question, it will be done as below:
Indexed cost of purchase = 5000000*785/426
= 9213615
Selling price = 16500000
LTCG = 16500000-9213615 = 7286385
LTCG tax = 20.3% of 7286385 = 1479136