How to avoid income tax in case of sale of share

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sonali (Querist)

09 February 2013 I m indian citizen...my qs is how to avoid tax from sale of share?? if any woman(age below 60years) gets Rs.6lakh in a year to sale of share,her max limit upto rs.2lakh per year,abv 2lakh tax ll pay..in dis case what she ll do to avoid tax?? if she shows that she buys gold of Rs.2lakh, makes FD in SBI Rs.1lakh, & another FD of Rs.1lakh in AXIS bank,in dis way ll she can avoid to pay tax??

Amol S Joglekar

Amol S Joglekar (Expert)

09 February 2013 long term capital gain is exempt. If it is short term, paying the tax would be easy than avoiding tax.

sonali

sonali (Querist)

10 February 2013 those shares is more than 10yrs holding..so that is long term capital gain..what is the calculation of computing of tax??

Guest

Guest (Expert)

10 February 2013 Do not worry , be relax and tell me following things

Period of holding of share is more than 12 months or not?

Shares sold through NSE/BSE ?

(throgh your broker that i know.) and STT has been paid at the time of sale or not?

sonali

sonali (Querist)

10 February 2013 yes period of holding almost 10yrs..2day's valuation of share is 600000...purchase price was 20000..stl shares are not sold out..bt we r thinking to sale those share..now tell me what ll b the computation of tax?? our broker tells us dat if we sale all together it ll be under payment of tax..so wht ll we do in this tym??wht is STT?? i dnt know nythng about tax..pls help me out..dis shares are my dad's property..bt he is no more..so i ve lot of presure now..

sonali

sonali (Querist)

10 February 2013 & all shares under BSE(I think so)...

Guest

Guest (Expert)

10 February 2013 Ok then relax , there would be no capital gain if you sold all the shares together
it is exempted under Section 10(38)
it is in Demat form? i.e. have in demat account?
STT is kind of tax (very nominal) on sale n purchase of securities such as shares etc.

Guest

Guest (Expert)

10 February 2013 now its clear to you or not and satisfied with answer or not

sonali

sonali (Querist)

10 February 2013 yes..it is cler..all shares are in demat form..so der is no tax levied??

Guest

Guest (Expert)

11 February 2013 yes, there would be no tax,
and invest your money properly,

sonali

sonali (Querist)

11 February 2013 ok..sir..thank u..now i gt more relief....