Doubt on first proviso to sec 48 (capital gains)
This query is : Resolved
CA Raviteja
(Querist)
16 April 2012
Dear Experts, kindly clarify my following doubt:-
As per First Proviso to Sec 48, a non resident is not available for indexation benifit while calculating LTCG on sale of shares of indian co and others specified.
However, sec 112 says that LTCG is taxed at 10% concessional rate where indexation benefit is not taken by the assessee (Instead of actual rate of 20%)
Note: It is assumed that STT is not applicable, hence LTCG is taxable.
My doubt is whether the assessee in this can be taxed at 10% (Since indexation benefit is not taken) or at normal rate of 20%?
As per First Proviso to Sec 48, a non resident is not available for indexation benifit while calculating LTCG on sale of shares of indian co and others specified.
However, sec 112 says that LTCG is taxed at 10% concessional rate where indexation benefit is not taken by the assessee (Instead of actual rate of 20%)
Note: It is assumed that STT is not applicable, hence LTCG is taxable.
My doubt is whether the assessee in this can be taxed at 10% (Since indexation benefit is not taken) or at normal rate of 20%?
CA PARAS BAFNA
(Expert)
16 April 2012
1. 10% rate is applicable where the LTCG is arising from the transfer of Listed Securities, units or Zero Coupon Bonds
and any of such assets is long term capital asset.
..
2. As per Note : STT is not Applicable
.
3. Whereas, it is clear that STT is applicable on transactions as described in para 1.
.
4. For such a case Section 122(1)(c) will be applicable.
and any of such assets is long term capital asset.
..
2. As per Note : STT is not Applicable
.
3. Whereas, it is clear that STT is applicable on transactions as described in para 1.
.
4. For such a case Section 122(1)(c) will be applicable.
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