Capital gain
This query is : Resolved
Divya Shah
(Querist)
21 August 2013
if there is long term capital gain on shares then is indexation should be applicable?
21 August 2013
Dear Divya,
LTCG on shares sold on stock exchange is exempt. hence, there is no question of indexation.
LTCG on shares sold on stock exchange is exempt. hence, there is no question of indexation.
Divya Shah
(Querist)
21 August 2013
yup. it is exempt. but i need to calculate exemption amount. so for calculating exemption amount, indexation is applicable?
21 August 2013
no divya...no indexation is to be taken...
the exempt amount is to be taken directly...as in sale consideration less the cost
the exempt amount is to be taken directly...as in sale consideration less the cost
Divya Shah
(Querist)
21 August 2013
ohk..!!! if investor is selling shares to other investor, den whts d case?
21 August 2013
yes..if it is being sold outside the stock exchange, then the Indexation benefit can be taken.
since the shares are listed, you can either choose to go for indexation wherein the tax rate will be 20%
or not go for indexation, then the rate will be 10%
you can choose whichever is beneficial to you.
since the shares are listed, you can either choose to go for indexation wherein the tax rate will be 20%
or not go for indexation, then the rate will be 10%
you can choose whichever is beneficial to you.
21 August 2013
Cost of shares can be indexed, irrespective of listed or not, as per the 2nd proviso to section 48.
Divya Shah
(Querist)
23 August 2013
THANK YOU EXPERTS ANKIT AND B.CHACKRAPANI WARRIER.
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