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Llp to buy sell shares

29 September 2016

We have a LLP incorporated to provide financial services to our clients. One of the clause in our partnership agreement allows us to buy and sell shares. I would like to know what are the taxes and their percentages levied if shares are bought and sold by LLP company.

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Namit (Accountant) (52 Points)
Replied 29 September 2016

The tax rates on gain on sale of shares shall depend on the type of shares and the period of holding. For example, if the shares are listed equity shares and sold on stock exchange after paying STT, they will be taxed @ 15% if sold within 12 months and tax free if sold after holding for 12 months. If the shares are not listed, and sold before 24 months, the gain on sale shall be included in the total income and taxed at normal rates whereas if sold after 24 months, the gain will be taxed at 20% after indexation.