capita gain tax

Save Share

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

10 July 2011 sir,

please tell me that long term capital gain tax of 10% without indexation or 20% with indexation applies only on shares or on any asset like land or building

and short term capital gain tax is fixed at 15% on all assets like shares, land, building etc

Thanks
Anshul Goel

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

10 July 2011 Q- Please tell me that long term capital gain tax of 10% without indexation or 20% with indexation applies only on shares or on any asset like land or building

Reply- The provision applies to long term capital assets being-
1. Listed Securities
2. Units
3. Zero Coupon Bonds

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

10 July 2011 Q2 Short term capital gain tax is fixed at 15% on all assets like shares, land, building etc
*
Reply- 15% rate on STCG is applicable where on sale transaction STT is paid in the case of -
1. Equity shares in a company
2. Units of an Equity Oriented Fund.

Querist : Anonymous

Querist : Anonymous (Querist)

12 July 2011 sir,
Thanks for ur reply

but i want more clarification

that provision of indexation on long term capital asset applies only on:-
1) securities
2) zero coupon bonds
3) units

and on all other assets long term capital gain tax is fixed at 20%

In STCG...,if STT is not paid then what would be tha rate and STT applies only on equity shares & units of equity oriented fund......???

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

12 July 2011 There are so many queries which have been mixed up.

In case of LTCG general tax rate is 20% in all cases where indexation is allowed.

STCG tax is levied at special rate of 15% where STT is paid in sale transaction.

In other cases tax on STCG is levied at Normal Rates or according to slab rates.

Querist : Anonymous

Querist : Anonymous (Querist)

16 July 2011 sir,

it means LTCG can not be taxed according to slab rate as in case of STCG and STT is not paid in case of LTCG.....???

Thanks

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now