Direct tax code - from when ? ?

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anckoora (Querist)

03 December 2011 Dear Sir,

(1) From which date (FY) this Direct Tax Code is going to be applicable ?

(2) Pl. give me details :how capital gain on investment in equities , is treated ? For short-term & long-term, how much is the period of holding ?

thanks
anckoora

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

04 December 2011 1. Date and DTC both are awaited.
2. LTCG on listed equity shares is exempt.
3. STCG on listed shares attracts tax @ 15%.
4. For LTCG shares -both types-listed and unlisted are to be held for than 12 months.
5. Indexation is allowed for Long Term unlisted Equity Shares. Taxed @ 20%.
6.STCG on unlisted shares -taxed at the applicable slab rate.

Ravindra Srinivasa

Ravindra Srinivasa (Expert)

06 December 2011 Direct Tax Code is not yet finalised.

Capital gain on investment is treated on period of holding basis.

If the stock holding is less than 12 months, it is short term capital gain and more than 12 months, it is long term capital gain.

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