Indexation on sale of listed share.
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
30 December 2012
Indexation is available to on sale of listed shares which is long term. and subject to exemtion of tax under section 10{38}
30 December 2012
Indexation is done to compute LT capital gains.
.
Capital Gains amount is required to be computed when the arising LT capital gain is taxable .
.
Whereas in case of listed shares, Section 10(38) talks about "income arising on transfer" of a LT Capital Asset. Income here means simply the difference of Sales consideration and cost.
.
So when your income is exempt, you are not supposed to compute capital gains.
.
Capital Gains are required to be computed only when these are taxable or such gains which are exempt U/s 54 to 54H.
.
Capital Gains amount is required to be computed when the arising LT capital gain is taxable .
.
Whereas in case of listed shares, Section 10(38) talks about "income arising on transfer" of a LT Capital Asset. Income here means simply the difference of Sales consideration and cost.
.
So when your income is exempt, you are not supposed to compute capital gains.
.
Capital Gains are required to be computed only when these are taxable or such gains which are exempt U/s 54 to 54H.
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