capital gain

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CA SONI KRUNAL (Querist)

10 July 2010 what are the capitl gain consequenses in case of sale of share purchased in 2002 , is the long term capital gain exemption is available to such capital gain?

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)

10 July 2010 If shares or equity MFs are held for more than 12 months before selling, the gain arising is classified as Long Term Capital Gain.

In the case of long term capital gain arising out of the sale of shares or equity mutual funds, there is no income tax.

The long term capital gain in this case is tax free.

CA KISHORE VANAMA

CA KISHORE VANAMA (Expert)

10 July 2010 Sir,

I think it is exempted only when these transfer is subject to security transaction Tax, if no STT is deducted it is chargeable to capital gains

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)

12 July 2010 I agree with the view of Kishore. If no STT is charged. You can chose any one of the following method.
1 Calculate gain without indexattion
2. Calculate gain with indexation

In fist option tax rate is 10% in second option Tax rate is 20%

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