long term capital gain on shares

Save Share

This query is : Resolved

hitesh (Querist)

31 July 2010 hii
i want to know for claiming long term gain on shares is it neccessary to pay stt on both side i.e on purchase and sale or only on sale transaction.

CA Sanat Pyne

CA Sanat Pyne (Expert)

31 July 2010 I THINK YOU ARE ASKING FOR EXEMPTION OF LONG TERM CAPITAL GAIN.
YES, BOTH TRANSACTION SHOULD ATTRACT STT TO GET BENIFIT OF EXEMPTION.

Taranjit Singh

Taranjit Singh (Expert)

31 July 2010 Long term capital gains tax from the sale of equity shares or units of equity oriented mutual funds which are subject to securities transaction tax (STT) is totally exempt u/s 10(38),

Short-term capital gain arising from such equity shares or units, which are subject to securities transaction tax (STT) shall be taxes at concessional rate of 15% u/s 111A w.e.f. A.Y. 2009-10

Taranjit Singh

Taranjit Singh (Expert)

31 July 2010 Securities Transaction Tax is applicable on purchase or sale of equity shares, derivatives, equity oriented funds and equity oriented Mutual Funds.

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)

31 July 2010 Fact of the cases
Claiming exemption u/s 10 (38) for LTCG

Provisio

If the transaction is subject to STT at both the time of purchase aswell as sales LTCG will be exempted from LTCG.

Whereas STCG will bear a concessional rate of tax u/s 111A if STT has been paid at the time of both sales and purchase

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now