LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Capital gains

riddhi (student) (746 Points)

14 July 2016

How to calculate short term / long term gain on shares? Do we need to consider no. of days?

Reply
Follow
Share

5 Replies

CA Saurabh Singh (Practising Chartered ) (974 Points)
Replied 14 July 2016

Hello Riddhi,

For computration of gain or loss on shares, just see their acquisition date and the date of sale the difference should be 12 months above to qualify as long term , yes no. of days shall be considered for computation

CA Srujann kumar Reddy (Asst Manager(Internal audit)) (1679 Points)
Replied 14 July 2016

agree with saurabh sir but a small correction it is 12 months, however if it is long term capital gain and listed in stock exchange then long term capital gain is exempted under 10(38)

riddhi (student) (746 Points)
Replied 14 July 2016

thank you and one more help. can you show me with an example for no. of days calculation for short term capital gain

CA Srujann kumar Reddy (Asst Manager(Internal audit)) (1679 Points)
Replied 14 July 2016

shares of xyz ltd purchased on 1.5.2016 for Rs.1000 per share, total 100 shares were purchased, on 14th july, 95 shares sold at 110/- per share.

period of holding: 31+30+13: 74 days,

short term capital gain, taxable amount 95*10: 950