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Long ter capital gains on shares

suresh babu (proprietor) (21 Points)

02 February 2018

if the LTCG is more than 100000 what is the taxable amt

For eg if LTCG is 110000,

10% tax on 110000 or 10000????

under the new budget proposals

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6 Replies

Prajjwal Kaushik (Finance Professional) (6216 Points)
Replied 02 February 2018

On the whole of the amount. But the gains accrued before 31 Jan to be ignored for taxation purposes.

Harsh Singal (46 Points)
Replied 02 February 2018

if sale after 31st jan. then cost of share is purchase amount or market value on 31st jan which ever is higher

Dipesh Jha (PRACTICE ) (673 Points)
Replied 02 February 2018

I think....10% tax on Only "10000".... Because the line said "income tax at the rate of10% shall be calculated on such income exceeding 100000".... So in ur case only 10000 exceeds 100000.... So only 10000 will be taxable at the rate of 10%

Harsh Singal (46 Points)
Replied 02 February 2018

no the whole amounts is taxable if amounts exceeds rs 100000

Dipesh Jha (PRACTICE ) (673 Points)
Replied 02 February 2018

Hows it can be possible..... Plz read section carefully
It state income tax @ 10% shall be calculated on only such nIcome which exceeds 100000... And in our case only 10000 exceeds 1lac.... So how can u say that full 110000 is taxable under 112A.??

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160439 Points)
Replied 02 February 2018

"The proposed new section 112A provides that where the total income of an assessee, includes any income chargeable under the head “Capital gains”, arising from the transfer of a long-term capital asset, being an equity share in a company or a unit of an equity oriented fund or a unit of a business trust, subject to the conditions specified under the section, the tax payable by the assessee on the capital gains exceeding one lakh rupees shall be calculated at the rate of ten per cent.".... Extracted from Finance bill, 2018