CA Harshal Totla
(Chartered Accountant)
(2229 Points)
Replied 28 July 2016
Rohit
(Student Others)
(61 Points)
Replied 28 July 2016
What will be my tax liability .means it will be treated as long or short term capital gain or will be clubbed in my income
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 28 July 2016
If shares are listed, then these would be long term capital asset if held for >12 months and tax liability @ 20% + EC (if no STT). If STT is suffered, then LTCG is exempt from tax. If shares are not listed, then these have to be held for >36m for treating them as long-term capital asset. If unlisted shares are sold in <=36m, the same would be treated as short term capital gain transaction and tax rate applicable as per slabs.
Rohit
(Student Others)
(61 Points)
Replied 28 July 2016
Mam shares are listed, STT is paid. but my question is i have to buy shares by taking loan. so in case of loan how the shares are treated. its proceeds will be treated as business income, STCG or LTCG and holding period will be more than 12 months
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 28 July 2016
It would not matter whether you buy shares out of your savings or borrowed funds. If borrowed funds are used for purchase of shares, interest on loan cannot be adjusted against any income. Tax treatment for sale of shares (in any case) remains the same as already explained above. Hope this is clear.
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 28 July 2016
CAclubindia
